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

þQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31,June 30, 2018
OR
 ¨   
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from             to             
Commission file number 001-08641
____________________________________________ 
a021914coeurminingrpmshsmb25.jpg
COEUR MINING, INC.
(Exact name of registrant as specified in its charter)

Delaware 82-0109423
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
  
104 S. Michigan Ave., Suite 900 Chicago, Illinois 60603
(Address of principal executive offices) (Zip Code)
(312) 489-5800
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:    Yes  þ    No  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.)    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer þAccelerated filer 
¨   
    
Non-accelerated filer 
¨   
Smaller reporting company 
¨   
      
   Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ
The Company has 300,000,000 shares of common stock, par value of $0.01, authorized of which 186,116,975187,062,006 shares were issued and outstanding as of April 23,July 24, 2018.

COEUR MINING, INC.
INDEX
  Page
Part I.
Financial Information
 
   
 
Item 1. Financial Statements
 
   
 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
3
   
 Condensed Consolidated Statements of Cash Flows (Unaudited)
4
   
 Condensed Consolidated Balance Sheets
5
   
 Condensed Consolidated Statement of Changes in Stockholders’ Equity
6
   
 Notes to Condensed Consolidated Financial Statements (Unaudited)
7
   
 
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
3137
   
 Consolidated Financial Results
3339
   
 Results of Operations
3442
   
 Liquidity and Capital Resources
3746
   
 Non-GAAP Financial Performance Measures
3949
   
 
Item 3. Quantitative and Qualitative Disclosures about Market Risk
4355
   
 
Item 4. Controls and Procedures
4557
   
Part II.
Other Information
4557
   
 
Item 1. Legal Proceedings
4557
   
 
Item 1A. Risk Factors
4557
   
 
Item 4. Mine Safety Disclosures
4657
   
 Item 5. Other Information
4657
   
 
Item 6. Exhibits
4759
   
Signatures
4760



PART I
Item 1.        Financial Statements

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
 
 Three months ended March 31, Three months ended June 30, Six months ended June 30,
 2018 2017 2018 2017 2018 2017
NotesIn thousands, except share dataNotesIn thousands, except share data
Revenue3$163,267
 $185,554
3$169,987
 $149,540
 $333,254
 $335,094
COSTS AND EXPENSES            
Costs applicable to sales(1)
399,340
 114,490
3108,246
 102,229
 207,586
 216,719
Amortization 30,777
 38,693
 29,459
 30,734
 60,236
 69,427
General and administrative 8,804
 10,125
 7,650
 7,025
 16,454
 17,150
Exploration 6,683
 5,252
 6,429
 7,813
 13,112
 13,065
Pre-development, reclamation, and other 4,225
 3,837
 3,620
 4,085
 7,845
 7,922
Total costs and expenses 149,829
 172,397
 155,404
 151,886

305,233
 324,283
OTHER INCOME (EXPENSE), NET            
Gain (loss) on debt extinguishment
—
 (9,342) —
 (9,342)
Fair value adjustments, net104,987
 (1,200)10(2,462) 336
 2,192
 (864)
Interest expense, net of capitalized interest18(5,965) (3,579)18(6,018) (3,744) (11,983) (7,323)
Other, net7180
 20,799
7544
 3,974
 1,057
 24,773
Total other income (expense), net (798) 16,020
 (7,936) (8,776)
(8,734) 7,244
Income (loss) before income and mining taxes 12,640
 29,177
 6,647
 (11,122)
19,287
 18,055
Income and mining tax (expense) benefit8(11,949) (10,878)8(3,717) 1,127
 (15,666) (9,751)
Income (loss) from continuing operations $691
 $18,299
 $2,930
 $(9,995)
$3,621
 $8,304
Income (loss) from discontinued operations21550
 364
21—
 (960) 550
 (596)
NET INCOME (LOSS) $1,241
 $18,663
 $2,930
 $(10,955)
$4,171
 $7,708
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:            
Unrealized gain (loss) on debt and equity securities (278) (2,182) (87) (18) (365) (2,200)
Reclassification adjustments for impairment of equity securities —
 121
 —
 305
 —
 426
Reclassification adjustments for realized (gain) loss on sale of equity securities —
 1,471
 —
 (203) —
 1,268
Other comprehensive income (loss) (278) (590) (87) 84

(365) (506)
COMPREHENSIVE INCOME (LOSS) $963
 $18,073
 $2,843
 $(10,871)
$3,806
 $7,202
            
NET INCOME (LOSS) PER SHARE9   9       
Basic income (loss) per share:            
Net income (loss) from continuing operations $0.00
 $0.10
 $0.02
 $(0.06) $0.02
 $0.05
Net income (loss) from discontinued operations 0.00
 0.00
 0.00
 (0.01) 0.00
 0.00
Basic(2)
 $0.01
 $0.10
 $0.02
 $(0.06) $0.02
 $0.04
Diluted income (loss) per share:            
Net income (loss) from continuing operations $0.00
 $0.10
 $0.02
 $(0.06) $0.02
 $0.05
Net income (loss) from discontinued operations 0.00
 0.00
 0.00
 (0.01) 0.00
 0.00
Diluted(2)
 $0.01
 $0.10
 $0.02
 $(0.06) $0.02
 $0.04
(1) Excludes amortization.
(2) Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share.
The accompanying notes are an integral part of these condensed consolidated financial statements.

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Three months ended March 31, Three months ended June 30, Six months ended June 30,
 2018 2017 2018 2017 2018 2017
NotesIn thousandsNotesIn thousands
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net income (loss) $1,241
 $18,663
 $2,930
 $(10,955) $4,171
 $7,708
(Income) loss from discontinued operations (550) (364) —
 960
 (550) 596
Adjustments:            
Amortization 30,777
 38,693
 29,459
 30,734
 60,236
 69,427
Accretion 3,318
 2,240
 3,886
 2,312
 7,204
 4,552
Deferred taxes 454
 2,584
 (1,265) (3,636) (811) (1,052)
Loss (gain) on debt extinguishment —
 9,342
 —
 9,342
Fair value adjustments, net10(4,987) 1,200
102,462
 (336) (2,192) 864
Stock-based compensation52,786
 3,307
51,850
 2,235
 4,636
 5,542
Gain on sale of the Joaquin project —
 (21,138) —
 —
 —
 (21,138)
Other 401
 (1,895) 2,174
 (3,421) 2,242
 (5,317)
Changes in operating assets and liabilities:            
Receivables (1,691) 5,680
 (8,888) (2,215) (10,579) 3,465
Prepaid expenses and other current assets (5,635) (4,906) 8,126
 4,061
 2,491
 (845)
Inventory and ore on leach pads (8,708) 15,171
 (2,766) (4,809) (11,474) 10,362
Accounts payable and accrued liabilities (1,865) (15,299) (39,262) (167) (41,127) (15,466)
CASH PROVIDED BY OPERATING ACTIVITIES OF CONTINUING OPERATIONS 15,541
 43,936
 (1,294)
24,105

14,247
 68,040
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS (2,690) 11,335
 —
 5,175
 (2,690) 16,510
CASH PROVIDED BY OPERATING ACTIVITIES 12,851
 55,271
 (1,294) 29,280
 11,557
 84,550
CASH FLOWS FROM INVESTING ACTIVITIES:            
Capital expenditures (42,345) (23,591) (41,165) (37,107) (83,510) (60,698)
Proceeds from the sale of assets 60
 15,019
 96
 436
 156
 15,455
Purchase of investments (361) (1,016) (39) (8,948) (400) (9,964)
Sale of investments 1,619
 10,020
 11,141
 898
 12,760
 10,918
Other (65) (14) (33) (52) (98) (66)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS (41,092) 418
 (30,000)
(44,773) (71,092) (44,355)
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS (28,470) (388) —
 (375) (28,470) (763)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (69,562) 30
 (30,000) (45,148) (99,562) (45,118)
CASH FLOWS FROM FINANCING ACTIVITIES:            
Issuance of notes and bank borrowings, net of issuance costs1815,000
 —
18—
 244,958
 15,000
 244,958
Payments on debt, capital leases, and associated costs18(18,449) (3,206)18(4,373) (188,910) (22,822) (192,116)
Other (4,606) (3,247) (233) (473) (4,839) (3,720)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS (8,055) (6,453) (4,606)
55,575

(12,661) 49,122
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS (22) (20) —
 (21) (22) (41)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (8,077) (6,473) (4,606) 55,554
 (12,683) 49,081
Effect of exchange rate changes on cash and cash equivalents 557
 555
 (175) 328
 382
 884
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (64,231) 49,383
 (36,075) 40,014

(100,306) 89,397
Less net cash provided by (used in) discontinued operations(1)
 (32,930) 5,527
 —
 (338) (32,930) 5,189
 (31,301) 43,856
 (36,075) 40,352
 (67,376) 84,208
Cash, cash equivalents and restricted cash at beginning of period 203,402
 126,601
 172,101
 170,457
 203,402
 126,601
Cash, cash equivalents and restricted cash at end of period $172,101
 $170,457
 $136,026
 $210,809

$136,026
 $210,809
(1) Less net cash provided by (used in) discontinued operations includes the following cash transactions: net subsidiary payments to parent company of $1,748 and $5,400 during$5,117 for the three months ended March 31,June 30, 2017 and $1,748 and $10,517 during the six months ended June 30, 2018 and 2017, respectively.

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

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 March 31, 2018 (unaudited) December 31, 2017 June 30, 2018 (unaudited) December 31, 2017
ASSETSNotesIn thousands, except share dataNotesIn thousands, except share data
CURRENT ASSETS        
Cash and cash equivalents $159,643
 $192,032
 $123,539
 $192,032
Receivables1435,864
 19,069
1440,759
 19,069
Inventory1561,723
 58,230
1562,154
 58,230
Ore on leach pads1575,584
 73,752
1575,261
 73,752
Prepaid expenses and other 18,203
 15,053
 11,925
 15,053
Assets held for sale21—
 91,421
21—
 91,421
 351,017
 449,557
 313,638
 449,557
NON-CURRENT ASSETS        
Property, plant and equipment, net16266,157
 254,737
16273,337
 254,737
Mining properties, net17843,821
 829,569
17861,379
 829,569
Ore on leach pads1567,430
 65,393
1570,043
 65,393
Restricted assets1322,116
 20,847
1321,635
 20,847
Equity and debt securities1337,317
 34,837
1323,804
 34,837
Receivables1455,428
 28,750
1453,046
 28,750
Other 18,649
 17,485
 19,022
 17,485
TOTAL ASSETS $1,661,935
 $1,701,175
 $1,635,904
 $1,701,175
LIABILITIES AND STOCKHOLDERS’ EQUITY        
CURRENT LIABILITIES        
Accounts payable $44,864
 $48,592
 $53,428
 $48,592
Accrued liabilities and other22105,149
 94,930
2261,664
 94,930
Debt1817,040
 30,753
1821,745
 30,753
Reclamation43,777
 3,777
43,777
 3,777
Liabilities held for sale21—
 50,677
21—
 50,677
 170,830
 228,729
 140,614
 228,729
NON-CURRENT LIABILITIES        
Debt18396,984
 380,569
18397,974
 380,569
Reclamation4119,154
 117,055
4121,264
 117,055
Deferred tax liabilities 105,224
 105,148
 102,626
 105,148
Other long-term liabilities 55,432
 54,697
 54,655
 54,697
 676,794
 657,469
 676,519
 657,469
STOCKHOLDERS’ EQUITY        
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 186,176,237 issued and outstanding at March 31, 2018 and 185,637,724 at December 31, 2017 1,862
 1,856
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 187,074,029 issued and outstanding at June 30, 2018 and 185,637,724 at December 31, 2017 1,871
 1,856
Additional paid-in capital 3,355,710
 3,357,345
 3,357,318
 3,357,345
Accumulated other comprehensive income (loss) (363) 2,519
 (450) 2,519
Accumulated deficit (2,542,898) (2,546,743) (2,539,968) (2,546,743)
 814,311
 814,977
 818,771
 814,977
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $1,661,935
 $1,701,175
 $1,635,904
 $1,701,175

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


COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
In thousands
Common
Stock
Shares
 
Common
Stock Par
Value
 
Additional
Paid-In Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Income (Loss)
 Total
Common
Stock
Shares
 
Common
Stock Par
Value
 
Additional
Paid-In Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Income (Loss)
 Total
Balances at December 31, 2017185,638
 $1,856
 $3,357,345
 $(2,546,743) $2,519
 $814,977
185,638
 $1,856
 $3,357,345
 $(2,546,743) $2,519
 $814,977
Net income (loss)—
 —
 —
 1,241
 —
 1,241
—
 —
 —
 4,171
 —
 4,171
Reclassification of unrealized gain (loss) on equity securities for ASU 2016-01—
 —
 —
 2,604
 (2,604) —
—
 —
 —
 2,604
 (2,604) —
Other comprehensive income (loss)—
 —
 —
 —
 (278) (278)—
 —
 —
 —
 (365) (365)
Common stock issued under stock-based compensation plans, net538
 6
 (1,635) —
 —
 (1,629)1,436
 15
 (27) —
 —
 (12)
Balances at March 31, 2018 (Unaudited)186,176
 $1,862
 $3,355,710
 $(2,542,898) $(363) $814,311
Balances at June 30, 2018 (Unaudited)187,074
 $1,871
 $3,357,318
 $(2,539,968) $(450) $818,771
The accompanying notes are an integral part of these condensed consolidated financial statements.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements


NOTE 1 - BASIS OF PRESENTATION
The interim condensed consolidated financial statements of Coeur Mining, Inc. and its subsidiaries (collectively, “Coeur” or the “Company”) are unaudited. In the opinion of management, all adjustments and disclosures necessary for the fair presentation of these interim statements have been included. The results reported in these interim statements may not be indicative of the results which will be reported for the year ending December 31, 2018. The condensed consolidated December 31, 2017 balance sheet data was derived from audited consolidated financial statements. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 10-K”).

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

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

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

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

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

The Company recognizes revenue from concentrate sales, net of treatment and refining charges, when it satisfies the performance obligation of transferring control of the concentrate to the customer.

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

The Company’s streaming agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) commenced in 2016 withprovided for a $20.0 million deposit paid by Franco-Nevada in exchange for the right and obligation, commencing in 2016, to purchase 50%
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

of a portion of Palmarejo gold production at the lesser of $800 or market price per ounce. Because there is no minimum obligation associated with thisthe deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation. The
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

streaming agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada.

The following table presents a rollforward of the Franco-Nevada contract liability balance:
Three months ended March 31,Three months ended June 30, Six months ended June 30,
In thousands2018 20172018 2017 2018 2017
Opening Balance$14,883
 $19,281
$14,340
 $17,652
 $14,883
 $19,281
Revenue Recognized(543) $(1,629)(541) $(817) $(1,084) $(2,446)
Closing Balance$14,340
 $17,652
$13,799
 $16,835
 $13,799
 $16,835

Recent Accounting Standards
In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business,” which clarifies the definition of a business to assist entities in the evaluation of acquisitions and disposals of assets or businesses. These changes became effective for the Company’s fiscal year beginning January 1, 2018 and did not materially impact the Company’s consolidated net income, financial position or cash flows.
In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230) - Restricted Cash,” which will require entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. These changes became effective for the Company’s fiscal year beginning January 1, 2018 and resulted in the inclusion of restricted cash equivalents on the Consolidated Statements of Cash Flows of $12.5 million at March 31,June 30, 2018 and $9.8 million at March 31,June 30, 2017.
In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments,” which provides guidance on presentation and classification of certain cash receipts and payments in the statement of cash flows. These changes became effective for the Company’s fiscal year beginning January 1, 2018 and did not materially impact the Company’s consolidated net income, financial position or cash flows.
In February 2016, the FASB issued ASU 2016-02, “Leases,” which will require lessees to recognize assets and liabilities for the rights and obligations created by most leases on the balance sheet. These changes become effective for the Company’s fiscal year beginning January 1, 2019. Modified retrospective adoption for all leases existing at, or entered into after, the date of initial application, is required with an option to use certain transition relief. The Company is currently evaluating the potential impact of implementing these changes on the Company’s consolidated financial position, results of operations, and cash flows.
In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income. This new guidance also updates certain disclosure requirements for these investments. These changes became effective for the Company’s fiscal year beginning January 1, 2018, and resulted in a reclassification of $2.6 million of unrealized holding gains and losses and deferred income taxes related to investments in equity securities from Accumulated other comprehensive income (loss) to Accumulated deficit in the Consolidated Balance Sheets on that date. Unrealized holding gains and losses related to investments in equity securities are now recognized in Fair value adjustments, net in the Consolidated Statements of Comprehensive Income (Loss).
In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” which provides a revised, simpler measurement for inventory to be measured at the lower of cost and net realizable value. These changes became effective for the Company’s fiscal year beginning January 1, 2018 and did not materially impact the Company’s consolidated net income, financial position or cash flows.
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”, which has subsequently been amended several times, to update revenue guidance under the newly-created ASC 606. The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition. These changes became effective under the modified retrospective method of adoption for the Company’s fiscal year beginning January 1, 2018 and did not materially impact the Company’s consolidated net income, financial position or cash flows.
    
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 3 – SEGMENT REPORTING
The Company’s operating segments include the Palmarejo complex, and the Rochester, Kensington, Wharf and Silvertip mines. Except for the Silvertip mine, which was acquired in the fourth quarter of 2017, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. Silvertip is engaged in the discovery, mining, and production of silver, zinc and lead. Other includes the La Preciosa project, other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.
The Company determined that the disposition of Empresa Minera Manquiri S.A., a Bolivian Sociedad anonima (“Manquiri”), which operates the San Bartolomé mine, represents a strategic shift to a North America-focused mining portfolio and has a significant effect on the entity's results and operations; therefore, the results of operations are presented as discontinued operations in Other for all periods presented.
Financial information relating to the Company’s segments is as follows (in thousands):
Three months ended March 31, 2018Palmarejo Rochester Silvertip Kensington Wharf Other Total
Three months ended June 30, 2018Palmarejo Rochester Silvertip Kensington Wharf Other Total
Revenue                          
Metal sales$70,037
 $33,497
 $—
 $36,300
 $23,433
 $—
 $163,267
$70,744
 $33,668
 $—
 $35,735
 $29,840
 $—
 $169,987
Costs and Expenses            

             
Costs applicable to sales(1)
31,096
 24,305
 —
 28,630
 15,309
 —
 99,340
30,310
 24,451
 —
 34,227
 19,258
 —
 108,246
Amortization16,325
 4,831
 —
 6,717
 2,657
 247
 30,777
14,633
 4,793
 —
 6,441
 3,353
 239
 29,459
Exploration3,970
 33
 —
 1,590
 10
 1,080
 6,683
3,198
 212
 106
 1,395
 —
 1,518
 6,429
Other operating expenses731
 884
 20
 321
 665
 10,408
 13,029
750
 903
 5
 327
 688
 8,597
 11,270
Other income (expense)                          
Fair value adjustments, net—
 —
 —
 —
 —
 4,987
 4,987
—
 —
 —
 —
 —
 (2,462) (2,462)
Interest expense, net(119) (98) (410) (243) (12) (5,083) (5,965)(147) (125) (246) (231) (11) (5,258) (6,018)
Other, net(2,144) (40) 362
 (37) (21) 2,060
 180
755
 466
 60
 (33) 64
 (768) 544
Income and mining tax (expense) benefit(12,443) (371) 835
 —
 (639) 669
 (11,949)(3,646) (463) 943
 —
 (1,036) 485
 (3,717)
Income (loss) from continuing operations$3,209

$2,935
 $767

$(1,238)
$4,120

$(9,102)
$691
$18,815
 $3,187
 $646
 $(6,919) $5,558
 $(18,357) $2,930
Income (loss) from discontinued operations$—
 $—
 $—
 $—
 $—
 $550
 $550
$—
 $—
 $—
 $—
 $—
 $—
 $—
Segment assets(2)
$377,146
 $245,881
 $361,212
 $215,244
 $104,805
 $119,922
 $1,424,210
$373,310
 $253,638
 $390,155
 $215,753
 $99,878
 $115,170
 $1,447,904
Capital expenditures$9,293
 $2,633
 $18,629
 $11,364
 $344
 $82
 $42,345
$9,479
 $669
 $19,045
 $10,708
 $1,162
 $102
 $41,165
(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests


Three months ended March 31, 2017Palmarejo Rochester Kensington Wharf Other Total
Three months ended June 30, 2017Palmarejo Rochester Kensington Wharf Other Total
Revenue                      
Metal sales$77,704
 $38,979
 $37,964
 $30,251
 $656
 $185,554
$53,235
 $32,791
 $35,567
 $27,013
 $934
 $149,540
Costs and Expenses                   

  
Costs applicable to sales(1)
43,001
 26,439
 28,443
 16,320
 287
 114,490
33,894

24,161

27,988

15,768
 418
 102,229
Amortization20,150
 5,816
 9,178
 3,111
 438
 38,693
14,431

4,938

8,347

2,549
 469
 30,734
Exploration1,631
 144
 839
 —
 2,638
 5,252
3,124

315

1,980

3
 2,391
 7,813
Other operating expenses301
 810
 345
 619
 11,887
 13,962
310

831

350

632
 8,987
 11,110
Other income (expense)        

          

  
Loss on debt extinguishment—
 —
 —
 —
 (9,342) (9,342)
Fair value adjustments, net—
 (1,200) —
 —
 —
 (1,200)—
 336
 —
 —
 —
 336
Interest expense, net(125) (117) (40) (19) (3,278) (3,579)(102) (133) (113) (17) (3,379) (3,744)
Other, net1,794
 (32) (808) 89
 19,756
 20,799
(498) 2,344
 (57) 336
 1,849
 3,974
Income and mining tax (expense) benefit(12,245) (498) —
 (957) 2,822
 (10,878)(3,229) 44
 —
 (1,060) 5,372
 1,127
Income (loss) from continuing operations$2,045

$3,923

$(1,689)
$9,314

$4,706
 $18,299
$(2,353) $5,137
 $(3,268) $7,320
 $(16,831) $(9,995)
Income (loss) from discontinued operations$—
 $—
 $—
 $—
 $364
 $364
$—
 $—
 $—
 $—
 $(550) $(960)
Segment assets(2)
$401,623
 $227,526
 $204,987
 $104,673
 $84,402
 $1,023,211
$397,254
 $241,381
 $207,103
 $104,311
 $83,338
 $1,033,387
Capital expenditures$6,230
 $10,568
 $5,521
 $887
 $385
 $23,591
$11,202
 $13,816
 $8,649
 $1,471
 $1,969
 $37,107
(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

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

AssetsMarch 31, 2018
December 31, 2017
Total assets for reportable segments$1,424,210
 $1,344,553
Cash and cash equivalents159,643
 192,032
Other assets78,082

164,590
Total consolidated assets$1,661,935

$1,701,175
Six months ended June 30, 2018Palmarejo Rochester Silvertip Kensington Wharf Other Total
Revenue             
Metal sales$140,781
 $67,165
 $—
 $72,035
 $53,273
 $—
 $333,254
Costs and Expenses            

Costs applicable to sales(1)
61,406
 48,756
 —
 62,857
 34,567
 —
 207,586
Amortization30,958
 9,624
 —
 13,158
 6,010
 486
 60,236
Exploration7,168
 245
 106
 2,985
 10
 2,598
 13,112
Other operating expenses1,481
 1,787
 25
 648
 1,353
 19,005
 24,299
Other income (expense)             
Fair value adjustments, net—
 —
 —
 —
 —
 2,192
 2,192
Interest expense, net(266) (223) (656) (474) (23) (10,341) (11,983)
Other, net(1,389) 426
 422
 (70) 43
 1,625
 1,057
Income and mining tax (expense) benefit(16,089) (834) 1,778
 —
 (1,675) 1,154
 (15,666)
Income (loss) from continuing operations$22,024

$6,122
 $1,413

$(8,157)
$9,678

$(27,459)
$3,621
Income (loss) from discontinued operations$—
 $—
 $—
 $—
 $—
 $550
 $550
Segment assets(2)
$373,310
 $253,638
 $390,155
 $215,753
 $99,878
 $115,170
 $1,447,904
Capital expenditures$18,772
 $3,302
 $37,674
 $22,072
 $1,506
 $184
 $83,510
(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests


Six months ended June 30, 2017Palmarejo Rochester Kensington Wharf Other Total
Revenue           
Metal sales$130,939
 $71,770
 $73,531
 $57,264
 $1,590
 $335,094
Costs and Expenses        —
  
Costs applicable to sales(1)
76,895
 50,600
 56,431
 32,088
 705
 216,719
Amortization34,581
 10,754
 17,525
 5,660
 907
 69,427
Exploration4,755
 459
 2,819
 3
 5,029
 13,065
Other operating expenses611
 1,641
 695
 1,251
 20,874
 25,072
Other income (expense)        

  
Loss on debt extinguishment—
 —
 —
 —
 (9,342) (9,342)
Fair value adjustments, net—
 (864)
—

—
 —
 (864)
Interest expense, net(227)
(250)
(153)
(36) (6,657) (7,323)
Other, net(127)
2,312

(865)
425
 23,028
 24,773
Income and mining tax (expense) benefit(14,415)
(454)
—

(2,016) 7,134
 (9,751)
Income (loss) from continuing operations$(672)
$9,060

$(4,957)
$16,635

$(11,762) $8,304
Income (loss) from discontinued operations$—
 $—
 $—
 $—
 $(596) $(596)
Segment assets(2)
$397,254
 $241,381
 $207,103
 $104,311
 $83,338
 $1,033,387
Capital expenditures$17,432
 $24,384
 $14,170
 $2,358
 $2,354
 $60,698
(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

AssetsJune 30, 2018
December 31, 2017
Total assets for reportable segments$1,447,904
 $1,344,553
Cash and cash equivalents123,539
 192,032
Other assets64,461

164,590
Total consolidated assets$1,635,904

$1,701,175







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

Geographic Information
Long-Lived AssetsMarch 31, 2018
December 31, 2017June 30, 2018
December 31, 2017
Mexico$364,047
 $370,188
$358,080
 $370,188
United States384,578
 377,768
391,026
 377,768
Canada350,556
 331,440
375,199
 331,440
Other10,797
 4,910
10,411
 4,910
Total$1,109,978

$1,084,306
$1,134,716

$1,084,306
 
RevenueThree months ended March 31,Three months ended June 30, Six months ended June 30,
2018 20172018 2017 2018 2017
United States$93,230
 $107,194
$99,243
 $95,371
 $192,473
 $202,565
Mexico70,037
 77,704
70,744
 53,235
 140,781
 130,939
Australia—
 656
—
 934
 —
 1,590
Total$163,267

$185,554
$169,987
 $149,540
 $333,254

$335,094
    
Coeur Mining, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

NOTE 4 – RECLAMATION
Reclamation and mine closure costs are based principally on legal and regulatory requirements. Management estimates costs associated with reclamation of mining properties. On an ongoing basis, management evaluates its estimates and assumptions, and future expenditures could differ from current estimates.
Changes to the Company’s asset retirement obligations for its operating sites are as follows:
Three months ended March 31,Three months ended June 30, Six months ended June 30,
In thousands2018 20172018 2017 2018 2017
Asset retirement obligation - Beginning$118,799
 $86,754

$120,848
 
$88,397
 $118,799
 $86,754
Accretion2,545
 2,064
2,766
 2,116
 5,311
 4,180
Settlements(496) (421)(707) (511) (1,203) (932)
Asset retirement obligation - Ending$120,848
 $88,397

$122,907
 
$90,002
 $122,907
 $90,002
The Company has accrued$2.1 million and $2.0 million at each of March 31,June 30, 2018 and December 31, 2017, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

NOTE 5 – STOCK-BASED COMPENSATION
The Company has stock incentive plans for executives and eligible employees. Stock awards include performance shares, restricted stock and stock options. Stock-based compensation expense for the three and six months ended March 31,June 30, 2018 and 2017 was $2.8$1.8 million and $3.3$4.6 million, respectively, compared to $2.2 million and $5.5 million to three and six months ended June 30, 2017, respectively. At March 31,June 30, 2018, there was $4.8$10.8 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.41.6 years.
The performance shares issued in 2018 vest at the end of a three-year service period if internal performance metrics are met. The number of shares that vest is also impacted by the inclusion of a modifier that is based upon a relative stockholder return metric. The relative stockholder return metric is included in the determination of the grant date fair value of the performance shares however the recognition of compensation cost for performance share awards is based on the results of the internal performance metrics. The performance shares issued prior to 2018 vest at the end of a three-year service period if relative stockholder return and internal performance metrics are met and the existence of a market condition requires recognition of compensation cost for the relative stockholder return portion of the performance share awards over the requisite period regardless of whether the relative stockholder return metric is met. All other stock-based compensation awards are consistent with prior years.
The following table summarizes the grants awarded during the threesix months ended March 31,June 30, 2018:
Grant date 
Restricted
stock
 
Grant date fair
value of
restricted stock
 Stock options 
Grant date
fair value of
stock
options
 
Performance
shares
 
Grant date fair
value of
performance
shares
 
Restricted
stock
 
Grant date fair
value of
restricted stock
 Stock options 
Grant date
fair value of
stock
options
 
Performance
shares
 
Grant date fair
value of
performance
shares
March 5, 2018 31,887
 $7.84
 —
 $—
 —
 $—
 31,887
 $7.84
 —
 $—
 —
 $—
May 9, 2018 868,134
 $7.90
 14,310
 $4.09
 408,179
 $7.39

The following options and stock appreciation rights were exercisable during the threesix months ended March 31,June 30, 2018:
Award Type 
Number of 
Exercised Units
 
Weighted Average
Exercised Price
 Number of Exercisable Units Weighted Average
Exercisable Price		 
Number of 
Exercised Units
 
Weighted Average
Exercised Price
 Number of Exercisable Units Weighted Average
Exercisable Price
Stock options 93,920
 $1.81
 397,651
 $14.39
 159,069
 $3.35
 334,838
 $14.72
Stock appreciation rights —
 $—
 42,152
 $14.14
 —
 $—
 42,152
 $14.14

NOTE 6 – RETIREMENT SAVINGS PLAN
The Company has a 401(k) retirement savings plan that covers all eligible U.S. employees. Eligible employees may elect to contribute up to 75% of base salary, subject to ERISA limitations. The Company generally makes matching contributions equal to the employee’s contribution up to 4% of the employee’s salary. The Company may also provide an additional contribution based on an eligible employee’s salary. Total plan expenses recognized for the three and six months ended March 31,June 30, 2018 and 2017 were $1.2$0.8 million and $2.1 million.$1.7 million, respectively, compared $1.8 million and $3.9 million to three and six months ended June 30, 2017, respectively. In addition, the Company has a deferred compensation plan for employees whose benefits under the 401(k) plan are limited by federal regulations.

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

NOTE 7 - OTHER, NET
Other, net consists of the following:
Three months ended March 31,Three months ended June 30, Six months ended June 30,
In thousands2018 20172018 2017 2018 2017
Foreign exchange gain (loss)$(670) $1,206
$(3,309) $786
 $(3,979) $1,992
Loss on sale of assets and investments(574) (2,066)
Gain (loss) on sale of assets and investments586
 513
 345
 (1,552)
Gain on sale of the Joaquin project—
 21,138
—
 —
 —
 21,138
Gain on repurchase of the Rochester royalty obligation—
 2,332
 —
 2,332
Mexico inflation adjustment1,939
 —
 1,939
 —
Other1,424
 521
1,328
 343
 2,752
 863
Other, net$180
 $20,799
$544
 $3,974
 $1,057
 $24,773

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

NOTE 8 - INCOME AND MINING TAXES
The following table summarizes the components of Income and mining tax (expense) benefit for the three and six months ended March 31,June 30, 2018 and 2017 by significant jurisdiction:

Three months ended March 31,Three months ended June 30, Six months ended June 30,
2018 20172018 2017 2018 2017
In thousandsIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefitIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefit
United States$1,187
$517
 $20,653
$(1,827)$(11,334)$(2,309) $(6,563)$2,315
 $(10,147)$(1,792) $14,090
$213
Argentina254
10
 (328)1,124
(180)(108) (129)945
 74
(97) (457)2,070
Canada(2,155)1,199
 6
940
 (3,909)2,044
 8
908
Mexico13,126
(13,222) 8,650
(9,923)20,542
(2,499) (2,195)(4,766) 33,669
(15,821) 6,455
(14,689)
Other jurisdictions(1,927)746

202
(252)(226)—

(2,241)1,693

(400)—

(2,041)1,747
$12,640
$(11,949) $29,177
$(10,878)$6,647
$(3,717) $(11,122)$1,127
 $19,287
$(15,666) $18,055
$(9,751)
The Company’s effective income and mining tax rate is a function of the combined effective tax rates and foreign exchange rates in the jurisdictions in which it operates. Variations in the jurisdictional mix of income and loss and foreign exchange rates result in significant fluctuations in the consolidated effective tax rate, along with mining taxes, uncertain tax positions, and a full valuation allowance on deferred tax assets related to losses in the United States and certain foreign jurisdictions. Fluctuations in foreign exchange rates on deferred tax balances decreased income and mining tax expense by $4.5 million and increased income and mining tax expense by $3.6 million and $5.6$3.0 million for the three months ended March 31,June 30, 2018 and 2017, respectively, predominately due to the strengthening of the Mexican Peso. Additionally, favorable operating results at Palmarejo contributed to higherrespectively. Fluctuations in foreign exchange rates on deferred tax balances decreased income and mining tax expense in Mexico.by $0.9 million and increased income and mining tax expense by $8.6 million for the six months ended June 30, 2018 and 2017, respectively. The impact of foreign exchange rates on deferred tax balances is predominately due to the Mexican Peso and Canadian Dollar.
A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see the sections titled “Risk Factors” set forth in the 2017 10-K.
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The statute of limitations remains open from 2014 forward for the U.S. federal jurisdiction and from 2008 forward for certain other foreign jurisdictions. As a result of statutes of limitation that will begin to expire within the next twelve months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease between $1.5 million and $2.5 million in the next twelve months.
At March 31,June 30, 2018 and December 31, 2017, the Company had $3.9$4.0 million and $4.3 million of total gross unrecognized tax benefits, respectively that, if recognized, would positively impact the Company’s effective income tax rate. The Company’s
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

continuing practice is to recognize potential interest and/or penalties related to unrecognized tax benefits as part of its income tax expense. At March 31,June 30, 2018 and December 31, 2017, the amount of accrued income-tax-related interest and penalties was $4.2$3.7 million and $4.8 million, respectively.

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

NOTE 9 – NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock.
For the three and six months ended March 31,June 30, 2018, 1,528,162 and 2017, 496,064 and 1,368,6851,563,841 common stock equivalents, respectively, related to equity-based awards were not included in the diluted earnings per share calculation as the shares would be antidilutive. Similarly, 852,176 and 1,426,480 common stock equivalents were excluded from the diluted earnings per share calculation for the three and six months ended June 30, 2017, respectively.
Three months ended March 31,Three months ended June 30, Six months ended June 30,
In thousands except per share amounts2018 20172018 2017 2018 2017
Net income (loss) available to common stockholders:          
Income (loss) from continuing operations$691
 $18,299
$2,930
 $(9,995) $3,621
 $8,304
Income (loss) from discontinued operations550
 364
—
 (960) 550
 (596)
$1,241
 $18,663
$2,930
 $(10,955) $4,171
 $7,708
          
Weighted average shares:          
Basic184,367
 178,898
185,183
 179,241
 184,777
 179,071
Effect of stock-based compensation plans3,254
 4,170
2,305
 —
 2,780
 4,049
Diluted187,621

183,068
187,488

179,241

187,557

183,120
          
Basic income (loss) per share:          
Income (loss) from continuing operations$0.00
 $0.10
$0.02
 $(0.06) $0.02
 $0.05
Income (loss) from discontinued operations0.00
 0.00
0.00
 (0.01) 0.00
 0.00
Basic(1)
$0.01

$0.10
$0.02
 $(0.06) $0.02

$0.04
          
Diluted income (loss) per share:          
Income (loss) from continuing operations$0.00
 $0.10
$0.02
 $(0.06) $0.02
 $0.05
Income (loss) from discontinued operations0.00
 0.00
0.00
 (0.01) 0.00
 0.00
Diluted(1)
$0.01

$0.10
$0.02
 $(0.06) $0.02

$0.04
(1) Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share.

NOTE 10 – FAIR VALUE MEASUREMENTS
Three months ended March 31,Three months ended June 30, Six months ended June 30,
In thousands2018 20172018 2017 2018 2017
Rochester royalty obligation$—
 $(1,200)$—
 $336
 $—
 $(864)
Interest rate swap(188) —
 (188) —
Unrealized gain (loss) on equity securities4,842
 —
(8,028) —
 (3,185) —
Realized gain (loss) on equity securities5,535
 —
 5,202
 —
Zinc options145
 —
219
 —
 363
 —
Fair value adjustments, net$4,987
 $(1,200)$(2,462) $336
 $2,192
 $(864)
Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

(Level 1), secondary priority to quoted prices in inactive markets or observable inputs (Level 2), and the lowest priority to unobservable inputs (Level 3).
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
Fair Value at March 31, 2018Fair Value at June 30, 2018
In thousandsTotal Level 1 Level 2 Level 3  Total Level 1 Level 2 Level 3  
Assets:              
Equity and debt securities$37,317
 $31,003
 $—
 $6,314
$23,804
 $17,577
 $—
 $6,227
Other derivative instruments, net552
 —
 552
 —
486
 —
 486
 —
$37,869
 $31,003
 $552
 $6,314
$24,290
 $17,577
 $486
 $6,227
Liabilities:              
Silvertip contingent consideration$48,289
 $—
 $—
 $48,289
$48,616
 $—
 $—
 $48,616
Other derivative instruments, net125
 —
 125
 —
302
 —
 302
 —
$48,414
 $—
 $125
 $48,289
$48,918
 $—
 $302
 $48,616
 
 Fair Value at December 31, 2017
In thousandsTotal Level 1 Level 2 Level 3  
Assets:       
Equity and debt securities$34,837
 $27,946
 $—
 $6,891
Other derivative instruments, net251
 —
 251
 —
 $35,088
 $27,946
 $251
 $6,891
Liabilities:       
Silvertip contingent consideration$47,965
 $—
 $—
 $47,965
Other derivative instruments, net222
 —
 222
 —
 $48,187
 $—
 $222
 $47,965
The Company’s investments in equity securities are recorded at fair market value in the financial statements based primarily on quoted market prices. Such instruments are classified within Level 1 of the fair value hierarchy. Quoted market prices are not available for certain debt securities; these securities are valued using pricing models, which require the use of observable and unobservable inputs, and are classified within Level 3 of the fair value hierarchy.
The Company’s other derivative instruments, net, include concentrate and certain doré sales contracts, as well as zinc hedges, and interest rate swap which are valued using pricing models with inputs derived from observable market data, including contractual terms, forward market prices, yield curves, credit spreads, and other unobservable inputs. The model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
In July 2017, the Company sold the Endeavor Silver Stream and remaining non-core royalties to Metalla Royalty & Streaming Ltd. (“Metalla”) for total consideration of $13.0 million, including a $6.7 million convertible debenture. The convertible debenture matures June 30, 2027, bears interest at a rate of 5% payable semi-annually, and is convertible into Metalla shares in connection with future equity financings or asset acquisitions by Metalla at the then-current price to maintain the Company’s approximate 19.9% ownership. The fair value of the convertible debenture is estimated based on observable marketand unobservable data including yield curves and credit spreads. Therefore, the Company classifies the convertible debenture in Level 3 of the fair value hierarchy.
In October 2017, the Company acquired the Silvertip mine from shareholders of JDS Silver Holdings Ltd.TheLtd. The consideration for the Silvertip mine includes two $25.0 million contingent payments, which are payable in cash and common stock upon reaching a future permitting milestone in 2018 and resource declaration milestone in 2019, respectively. The fair value of the Silvertip contingent consideration is estimated based on an estimated discount rate of 2.5% for the contingent permitting payment and 2.9% for the contingent resource declaration payment and is classified within Level 3 of the fair value hierarchy.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

No assets or liabilities were transferred between fair value levels in the threesix months ended March 31,June 30, 2018.
The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities for the three and six months ended March 31,June 30, 2018:
Three Months Ended March 31, 2018Three Months Ended June 30, 2018
In thousandsBalance at the beginning of the period Revaluation Settlements Accretion 
Balance at the
end of the
period
Balance at the beginning of the period Revaluation Settlements Accretion Balance at the
end of the
period
Assets:                  
Equity and debt securities$6,891
 $(278) $(299) $—
 $6,314
$6,314
 $(87) $—
 $—
 $6,227
Liabilities:                  
Silvertip contingent consideration$47,965
 $—
 $—
 $324
 $48,289
$48,289
 $—
 $—
 $327
 $48,616
 Six Months Ended June 30, 2018
In thousandsBalance at the beginning of the period Revaluation Settlements Accretion 
Balance at the
end of the
period
Assets:         
Equity and debt securities$6,891
 $(365) $(299) $—
 $6,227
Liabilities:         
Silvertip contingent consideration$47,965
 $—
 $—
 $651
 $48,616
The fair value of financial assets and liabilities carried at book value in the financial statements at March 31,June 30, 2018 and December 31, 2017 is presented in the following table:
March 31, 2018June 30, 2018
In thousandsBook Value Fair Value Level 1 Level 2 Level 3  Book Value Fair Value Level 1 Level 2 Level 3  
Assets:                  
Manquiri Notes Receivable$39,887
 $39,887
 $—
 $—
 $39,887
$40,315
 $40,157
 $—
 $—
 $40,157
Liabilities:  
        
      
5.875% Senior Notes due 2024(1)
$245,280
 $244,520
 $—
 $244,520
 $—
$245,471
 $238,019
 $—
 $238,019
 $—
Revolving Credit Facility(2)
$115,000
 $115,000
 $—
 $115,000
 $—
$115,000
 $115,000
 $—
 $115,000
 $—
(1) Net of unamortized debt issuance costs of $4.7$4.5 million.
(2) Unamortized debt issuance costs of $1.8$1.7 million included in Other Non-Current Assets.
 December 31, 2017
In thousandsBook Value Fair Value Level 1 Level 2 Level 3  
Liabilities:         
5.875% Senior Notes due 2024(1)
$245,088
 $243,913
 $—
 $243,913
 $—
Revolving Credit Facility(2)
$100,000
 $100,000
 $—
 $100,000
 $—
(1) Net of unamortized debt issuance costs of $4.9 million.
(2) Unamortized debt issuance costs of $1.9 million included in Other Non-Current Assets.
The fair value of the Manquiri Notes Receivable approximates bookis estimated based on observable and unobservable data including yield curves and credit spreads, therefore, the Company classifies the Manquiri Notes Receivable in Level 3 of the fair value due to no significant change in interest rates since the sale of Manquiri;hierarchy; see Note 21 -- Discontinued Operations for additional detail. The fair value of the 5.875% Senior Notes due 2024 (the “2024 Senior Notes”) was estimated using quoted market prices. The fair value of the Revolving Credit Facility approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.

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

NOTE 11 – DERIVATIVE FINANCIAL INSTRUMENTS
Provisional Silver and Gold Sales
The Company enters into sales contracts with third-party smelters and refiners which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable recorded at the forward price at the time of sale. The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement. Changes in silver and gold prices resulted in provisional pricing mark-to-market gainslosses of $0.3 million and $1.2 million$20 thousand in the three and six months ended March 31,June 30, 2018, and 2017, respectively.
Zinc Options
At March 31,June 30, 2018, the Company has outstanding Asian (or average value) put and call option contracts in net-zero-cost collar arrangements on a volume of 300 metric tons of zinc per month commencing in April 2018 and ending in December 2018. The weighted average strike prices on the put and call contracts are $3,000 and $4,050 per metric ton, respectively. The contracts are generally net cash settled and, if the price of zinc at the time of the expiration is between the put and call prices, would expire
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

at no cost to the Company. At March 31,June 30, 2018, the fair market value of the put and call zero cost collar contracts was a net asset of $0.1$0.4 million.
During the threesix months ended March 31,June 30, 2018, the Company had recorded unrealized gains of $0.1$0.4 million related to outstanding options which were included in Fair value adjustments, net. At March 31,June 30, 2017, the Company had no outstanding options contracts.
Interest Rate Swap
The Company is a party to an interest rate swap contract in which it will receive variable-rate interest and pay fixed-rate interest. The Company uses this instrument to manage its exposure to changes in interest rates related to its Revolving Credit Facility (see Note 18 -- Debt). The interest rate swap derivative instrument is not designated as a hedge from an accounting standpoint and hedge accounting is not applied. The notional amount is used to measure interest to be paid or received. The interest rate swap derivative instrument is effective June 2018 with a contractual term of twelve months and net settles monthly.
At March 31,June 30, 2018, the Company had the following derivative instruments that settle as follows:
In thousands except average prices and notional ounces2018 Thereafter2018 Thereafter
   
Provisional silver sales contracts$831
 $—
Average silver price per ounce$16.66
 $—
Notional ounces49,853
 —
      
Provisional gold sales contracts$59,332
 $—
$46,485
 $—
Average gold price per ounce$1,317
 $—
$1,299
 $—
Notional ounces45,051
 —
35,787
 —
      
Zinc put options purchased$8,100
 $—
$5,400
 $—
Average zinc strike price per metric ton$3,000
 $—
$3,000
 $—
Notional metric tons2,700
 —
1,800
 —
      
Zinc call options sold$(10,935) $—
$(7,290) $—
Average zinc strike price per metric ton$4,050
 $—
$4,050
 $—
Notional metric tons2,700
 —
1,800
 —
   
Fixed interest rate swap payable$(1,281) $—
Fixed Interest rate2.46% —
Notional dollars$50,000
 $—
   
Variable interest rate swap receivable$1,088
 $—
Average variable interest rate2.09% $—
Notional dollars$50,000
 $—


The following summarizes the classification of the fair value of the derivative instruments:
 March 31, 2018
In thousandsPrepaid expenses and other Accrued liabilities and other Current portion of royalty obligation Non-current portion of royalty obligation
Provisional silver and gold sales contracts$407
 $125
 $—
 $—
Zinc options145
 —
 —
 —
 $552
 $125
 $—
 $—
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

 June 30, 2018
In thousandsPrepaid expenses and other Accrued liabilities and other Current portion of royalty obligation Non-current portion of royalty obligation
Provisional silver and gold sales contracts$123
 $114
 $—
 $—
Zinc options363
 —
 —
 —
Interest rate swaps—
 188
 —
 —
 $486
 $302
 $—
 $—
 December 31, 2017
In thousandsPrepaid expenses and other Accrued liabilities and other Current portion of royalty obligation Non-current portion of royalty obligation
Provisional silver and gold sales contracts$251
 $222
 $—
 $—
The following represent mark-to-market gains (losses) on derivative instruments for the three and six months ended March 31,June 30, 2018, and 2017, respectively (in thousands):
 Three months ended March 31, Three months ended June 30, Six months ended June 30,
Financial statement lineDerivative2018 2017Derivative2018 2017 2018 2017
RevenueProvisional silver and gold sales contracts$253
 $1,212
Provisional silver and gold sales contracts$(273) $(763) $(20) $449
Fair value adjustments, netZinc options145
 —
Zinc options219
 —
 363
 —
Fair value adjustments, netInterest rate swaps(188) —
 (188) —
 $398
 $1,212
 $(242) $(763) $155
 $449
Credit Risk
The credit risk exposure related to any derivative instrument is limited to the unrealized gains, if any, on outstanding contracts based on current market prices. To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution. The Company does not anticipate non-performance by any of its counterparties.

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

NOTE 12 – ACQUISITIONS

In October 2017, the Company completed the acquisition of JDS Silver Holdings Ltd. and its wholly-owned subsidiary JDS Silver Inc. (together, “JDS Silver”) which, following the closing of the acquisition, were amalgamated with a subsidiary of Coeur to form Coeur Silvertip Holdings Ltd., which owns the underground Silvertip silver-zinc-lead mine in northern British Columbia, Canada. JDS Silver was purchased for approximately $153.2 million in cash and $36.0 million in Coeur common stock. In addition, the Company recorded $47.7 million of contingent consideration payable in cash and common stock upon reaching future permitting and resource declaration milestones. The cash consideration was funded with $100.0 million of borrowing under the Facility (as defined in Note 18 -- Debt) and cash on hand. Upon closing, the Company issued approximately 4.2 million Coeur shares to former shareholders of JDS Silver Holdings Ltd. The acquisition aligns with the Company’s strategic shift to a North America-focused mining portfolio.
The transaction was accounted for as a business combination, which requires that assets acquired and liabilities assumed be recognized at their respective fair values at the acquisition date. The acquisition is not significant to the Company’s results of operations, individually or in the aggregate, because the Silvertip mine is in pre-production. As there are no significant differences from the Company’s historical results of operations, no pro forma financial information is provided.
The allocation of purchase price to the acquired assets and liabilities assumed is preliminary as of March 31,June 30, 2018 and subsequent adjustments may result in changes to mineral interest and other carrying amounts initially assigned based on the preliminary fair value analysis. The principal remaining items to be valued are property, plant and equipment and mining properties, which will be finalized as management continues to review the valuation methodologies used to estimate the fair value of these assets. The preliminary purchase price allocation is as follows (in thousands):
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

Common shares issued (4,191,679 at $8.59)$36,007
Cash153,194
Contingent consideration47,705
Total purchase price(1)
$236,906
Assets: 
Receivables and other assets$6,828
Property, plant, and equipment29,943
Mining properties, net288,464
 325,235
Liabilities: 
Accounts payable and accrued liabilities13,077
Asset retirement obligation6,982
Debt and capital lease20,149
Deferred income taxes48,121
 88,329
Net assets acquired$236,906
(1) Purchase price has been adjusted for restricted cash acquired due to the adoption of ASU 2016-01.
            
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 13 – INVESTMENTS
Equity and Debt Securities
The Company makes strategic investments in equity and debt securities of silver and gold exploration and development companies.
At March 31, 2018At June 30, 2018
In thousandsCost 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Cost 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Equity Securities              
Metalla Royalty & Streaming Ltd.$6,294
 $—
 $2,837
 $9,131
6,294
 —
 2,228
 8,522
Corvus Gold Inc.3,582
 —
 6,844
 10,426
Almaden Minerals, Ltd.2,067
 (727) —
 1,340
Northern Empire Resources Corp.4,489
 —
 2,999
 7,488
4,489
 —
 2,298
 6,787
Rockhaven Resources, Ltd.2,064
 (596) —
 1,468
2,064
 (623) —
 1,441
Other1,190
 (155) 115
 1,150
1,441
 (634) 20
 827
Equity securities$19,686
 $(1,478) $12,795
 $31,003
$14,288
 $(1,257) $4,546
 $17,577
              
Debt Securities              
Metalla Royalty & Streaming Ltd.$6,677
 $(363) $—
 $6,314
$6,677
 $(450) $—
 $6,227
              
Equity and debt securities$26,363
 $(1,841) $12,795
 $37,317
$20,965
 $(1,707) $4,546
 $23,804

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

 At December 31, 2017
In thousandsCost 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Equity Securities       
Metalla Royalty & Streaming Ltd.$6,294
 $—
 $1,354
 $7,648
Corvus Gold Inc.3,582
 —
 4,518
 8,100
Almaden Minerals, Ltd.3,125
 (235) —
 2,890
Northern Empire Resources Corp.4,489
 —
 1,077
 5,566
Rockhaven Resources, Ltd.2,064
 (193) —
 1,871
Kootenay Silver, Inc.738
 —
 1
 739
Other1,479
 (453) 405
 1,431
Equity securities$21,771
 $(881) $7,355
 $28,245
        
Debt Securities       
Metalla Royalty & Streaming Ltd.$6,677
 $(85) $—
 $6,592
        
Equity and debt securities$28,448
 $(966) $7,355
 $34,837

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


Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
 Three months ended June 30, Six months ended June 30,
In thousands2018 2017 2018 2017
Net gain (loss)$(2,493) $203
 $2,017
 $(1,268)
Less: Realized (gain) loss(5,535) (203) (5,202) 1,268
Unrealized gain (loss)$(8,028) $—
 $(3,185) $—

The Company performs a quarterly assessment on its debt securities with unrealized losses to determine if the securities are other than temporarily impaired. The following table summarizes unrealized losses on debt securities for which other-than-temporary impairments have not been recognized and the fair values of those securities, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at March 31,June 30, 2018:

 Less than twelve months Twelve months or more Total
In thousandsUnrealized LossesFair Value Unrealized LossesFair Value Unrealized LossesFair Value
Debt securities363
6,314
 —
—
 363
6,314
Restricted Assets
The Company, under the terms of its self-insurance and bonding agreements with certain banks, lending institutions and regulatory agencies, is required to collateralize certain portions of its asset retirement obligations. The Company has collateralized these obligations by assigning certificates of deposit that have maturity dates ranging from three months to a year to the applicable institutions or agencies. At March 31,June 30, 2018 and December 31, 2017, the Company held certificates of deposit and cash equivalents under these agreements of $22.1$21.6 million and $17.6$20.8 million, respectively. The ultimate timing of the release of the collateralized amounts is dependent on the timing and closure of each mine and repayment of the obligation. In order to release the collateral, the Company must seek approval from certain government agencies responsible for monitoring the mine closure status. Collateral could also be released to the extent the Company is able to secure alternative financial assurance satisfactory to the regulatory agencies. The Company believes the collateral will remain in place beyond a twelve-month period and has therefore classified these investments as long-term.

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

NOTE 14 – RECEIVABLES
Receivables consist of the following:
In thousandsMarch 31, 2018 December 31, 2017June 30, 2018 December 31, 2017
Current receivables:      
Trade receivables$3,840
 $5,883
$6,437
 $5,883
Income tax receivable48
 7
Value added tax receivable14,482
 10,982
15,602
 10,982
Manquiri note receivable15,840
 —
Manquiri Notes Receivable16,267
 —
Other1,654
 2,197
2,453
 2,204
$35,864
 $19,069
$40,759
 $19,069
Non-current receivables:      
Value added tax receivable$31,381
 $28,750
$28,999
 $28,750
Manquiri note receivable24,047
 —
Manquiri Notes Receivable24,047
 —
55,428
 28,750
53,046
 28,750
Total receivables$91,292
 $47,819
$93,805
 $47,819

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

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

NOTE 15 – INVENTORY AND ORE ON LEACH PADS
Inventory consists of the following:
In thousandsMarch 31, 2018 December 31, 2017June 30, 2018 December 31, 2017
Inventory:      
Concentrate$11,062
 $6,831
$9,265
 $6,831
Precious metals17,783
 18,803
19,299
 18,803
Supplies32,878
 32,596
33,590
 32,596
61,723
 58,230
62,154
 58,230
Ore on leach pads:      
Current75,584
 73,752
75,261
 73,752
Non-current67,430
 65,393
70,043
 65,393
143,014
 139,145
145,304
 139,145
Total inventory and ore on leach pads$204,737
 $197,375
$207,458
 $197,375

NOTE 16 – PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following:
In thousandsMarch 31, 2018 December 31, 2017June 30, 2018 December 31, 2017
Land$9,107
 $9,408
$9,127
 $9,408
Facilities and equipment559,276
 554,160
559,454
 554,160
Assets under capital leases88,720
 82,753
99,228
 82,753
657,103
 646,321
667,809
 646,321
Accumulated amortization (1)
(456,374) (448,001)(464,812) (448,001)
200,729
 198,320
202,997
 198,320
Construction in progress65,428
 56,417
70,340
 56,417
Property, plant and equipment, net$266,157
 $254,737
$273,337
 $254,737
(1) Includes $29.0$39.7 million and $28.2 million of accumulated amortization related to assets under capital leases at March 31,June 30, 2018 and December 31, 2017, respectively.

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

NOTE 17 – MINING PROPERTIES
Mining properties consist of the following (in thousands):
March 31, 2018Palmarejo Rochester Silvertip Kensington Wharf La Preciosa Other Total
June 30, 2018Palmarejo Rochester Silvertip Kensington Wharf La Preciosa Other Total
Mine development$220,141
 $194,390
 $70,626
 $307,996
 $40,688
 $—
 $—
 $833,841
$227,048
 $196,182
 $93,325
 $315,097
 $41,041
 $—
 $—
 $872,693
Accumulated amortization(151,102) (146,245) —
 (182,555) (16,456) —
 —
 (496,358)(155,239) (147,968) —
 (186,204) (17,240) —
 —
 (506,651)
69,039
 48,145
 70,626
 125,441
 24,232
 —
 —
 337,483
71,809
 48,214
 93,325
 128,893
 23,801
 —
 —
 366,042
Mineral interests629,303
 —
 245,116
 —
 45,837
 49,085
 7,102
 976,443
629,303
 —
 245,116
 —
 45,837
 49,085
 7,102
 976,443
Accumulated amortization(445,327) —
 —
 —
 (24,655)—
—
 (123) (470,105)(455,346) —
 —
 —
 (25,343)
—
 (417) (481,106)
183,976
 —
 245,116
 —
 21,182
 49,085
 6,979
 506,338
173,957
 —
 245,116
 —
 20,494
 49,085
 6,685
 495,337
Mining properties, net$253,015
 $48,145
 $315,742
 $125,441
 $45,414
 $49,085
 $6,979
 $843,821
$245,766
 $48,214
 $338,441
 $128,893
 $44,295
 $49,085
 $6,685
 $861,379
December 31, 2017Palmarejo Rochester Silvertip Kensington Wharf La Preciosa TotalPalmarejo Rochester Silvertip Kensington Wharf La Preciosa Total
Mine development$214,383
 $193,881
 $57,214
 $298,749
 $40,618
 $—
 $804,845
$214,383
 $193,881
 $57,214
 $298,749
 $40,618
 $—
 $804,845
Accumulated amortization(146,598) (144,390) —
 (178,632) (15,748) —
 (485,368)(146,598) (144,390) —
 (178,632) (15,748) —
 (485,368)
67,785
 49,491
 57,214
 120,117
 24,870
 —
 319,477
67,785
 49,491
 57,214
 120,117
 24,870
 —
 319,477
Mineral interests629,303
 —
 245,116
 —
 45,837
 49,085
 969,341
629,303
 —
 245,116
 —
 45,837
 49,085
 969,341
Accumulated amortization(435,215) —
 —
 —
 (24,034)—
—
 (459,249)(435,215) —
 —
 —
 (24,034) —
 (459,249)
194,088
 —
 245,116
 —
 21,803
 49,085
 510,092
194,088
 —
 245,116
 —
 21,803
 49,085
 510,092
Mining properties, net$261,873
 $49,491
 $302,330
 $120,117
 $46,673
 $49,085
 $829,569
$261,873
 $49,491
 $302,330
 $120,117
 $46,673
 $49,085
 $829,569
In February 2018, the Company completed the sale of Manquiri, which operates the San Bartolomé mine. Pursuant to the terms of the agreement, the Company received, among other things,consideration, a 2.0% net smelter returns royalty. Coeur estimates the value of this net smelter returns royalty to be approximately $7.1 million, which is included in Other. See Note 21 -- Discontinued Operations for additional detail.
The Silvertip mine is expected to reach commercial production in the secondthird quarter of 2018. The determination of commercial production (or ready for intended use) is based on many factors requiring the exercise of judgment.  Factors that are considered when determining if intended use has been achieved include achievement of continuous production or other output, mineral recoveries at or near expected levels, the absence of routine take-downs of the plant to address commissioning issues and fix problems, and the release of the commissioning team.
Prior to commercial production, costs related to mine development, construction of long-lived assets, and inventory are capitalized; all other costs are expensed in the period incurred. Amortization of mining properties will commence when the mine has been determined to be in commercial production.

NOTE 18 – DEBT
March 31, 2018 December 31, 2017June 30, 2018 December 31, 2017
In thousandsCurrent Non-Current Current Non-CurrentCurrent Non-Current Current Non-Current
2024 Senior Notes, net(1)
$—
 $245,280
 $—
 $245,088
$—
 $245,471
 $—
 $245,088
Revolving Credit Facility(2)
—
 115,000
 —
 100,000
—
 115,000
 —
 100,000
Capital lease obligations17,040
 36,704
 16,559
 35,481
21,745
 37,503
 16,559
 35,481
Silvertip debt obligation—
 —
 14,194
 —
—
 —
 14,194
 —
$17,040
 $396,984
 $30,753
 $380,569
$21,745
 $397,974
 $30,753
 $380,569
(1) Net of unamortized debt issuance costs of $4.7$4.5 million and $4.9 million at March 31,June 30, 2018 and December 31, 2017, respectively.
(2) Unamortized debt issuance costs of $1.8$1.7 million and $1.9 million at March 31,June 30, 2018 and December 31, 2017, respectively, included in Other Non-Current Assets.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

5.875% Senior Notes due 2024
In May 2017, the Company completed an offering of $250.0 million in aggregate principal amount of 2024 Senior Notes in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, for net proceeds of approximately $245.0 million. The 2024 Senior Notes bear interest at a rate of 5.875% per year from the date of issuance.  Interest on the 2024 Senior Notes is payable semi-annually in arrears on June 1 and December 1 of each year. The 2024 Senior Notes will mature on June 1, 2024 and are fully and unconditionally guaranteed by the Guarantors.
Revolving Credit Facility
In September 2017, the Company, as borrower, and certain subsidiaries of the Company, as guarantors, entered into a Credit Agreement (the “Credit Agreement”) with Bank of America, N.A, Royal Bank of Canada, Bank of Montreal, and the Bank of Nova Scotia. The Credit Agreement provides for a $200.0 million senior secured revolving credit facility (the “Facility”), which may be increased by up to $50.0 million in incremental loans and commitments subject to the terms of the Credit Agreement. The Facility has a term of four years. Loans under the Facility will bear interest at a rate equal to either a base rate plus a margin ranging from 1.00% to 1.75% or an adjusted LIBOR rate plus a margin ranging from 2.00% to 2.75%, as selected by the Company, in each case, with such margin determined in accordance with a pricing grid based upon the Company’s consolidated net leverage ratio as of the end of the applicable period.
At March 31,June 30, 2018, the Company had $73.0 million available under the Facility; $15.0 million was drawn to repay the third-party debt obligation at Silvertip as described below, $100.0 million was drawn to partially fund the Silvertip acquisition in 2017, and $12.0 million currently supports outstanding letters of credit. At March 31,June 30, 2018, the interest rate of the Facility was 4.1%4.335%. The Company has swapped $50,000,000 of variable rate debt on the Facility to fixed rate debt through an interest rate swap.
Silvertip Debt Obligation
The Company assumed an existing third-party debt obligation as part of the Silvertip acquisition. In February 2018, the Company voluntarily terminated and repaid the remaining debt obligation of $12.6 million.
Capital Lease Obligations
From time to time, the Company acquires mining equipment under capital lease agreements. In the threesix months ended March 31,June 30, 2018, the Company entered into new lease financing arrangements primarily for mining equipment at Rochester, Palmarejo, Silvertip and Kensington. All capital lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments.
Interest Expense
Three months ended March 31,Three months ended June 30, Six months ended June 30,
In thousands2018 20172018 2017 2018 2017
2024 Senior Notes$3,673
 $—
$3,672
 $1,265
 $7,344
 $1,265
2021 Senior Notes—
 3,504
—
 2,717
 —
 6,221
Revolving Credit Facility1,152
 —
1,369
 —
 2,521
 —
Capital lease obligations524
 306
515
 383
 1,039
 689
Amortization of debt issuance costs325
 166
324
 172
 649
 338
Accretion of debt premium—
 (43)—
 (28) —
 (71)
Accretion of Silvertip contingent consideration324
 —
327
 —
 651
 —
Other debt obligations107

9
6
 9
 114

18
Capitalized interest(140) (363)(195) (774) (335) (1,137)
Total interest expense, net of capitalized interest$5,965
 $3,579
$6,018
 $3,744
 $11,983
 $7,323

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

NOTE 19 - SUPPLEMENTAL GUARANTOR INFORMATION
The following Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10 of Regulation S-X resulting from the guarantees by Coeur Alaska, Inc., Coeur Explorations, Inc., Coeur Rochester, Inc., Coeur South America Corp., Wharf Resources (U.S.A.), Inc. and its subsidiaries, and Coeur Capital, Inc. (collectively, the “Subsidiary Guarantors”) of the 2024 Senior Notes. The following schedules present Consolidating Financial Statements of (a) Coeur, the parent company; (b) the Subsidiary Guarantors; and (c) certain wholly-owned domestic and foreign subsidiaries of the Company (collectively, the “Non-Guarantor Subsidiaries”). Each of the Subsidiary Guarantors is 100% owned by Coeur and the guarantees are full and unconditional and joint and several obligations. There are no restrictions on the ability of Coeur to obtain funds from the Subsidiary Guarantors by dividend or loan.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
THREE MONTHS ENDED MARCH 31,JUNE 30, 2018
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations ConsolidatedCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
Revenue $—
 $93,230
 $70,037
 $—
 $163,267
$—
 $99,243
 $70,744
 $—
 $169,987
COSTS AND EXPENSES                   
Costs applicable to sales(1)
 —
 68,245
 31,095
 —
 99,340
—
 77,935
 30,311
 —
 108,246
Amortization 246
 14,205
 16,326
 —
 30,777
236
 14,587
 14,636
 —
 29,459
General and administrative 8,797
 3
 4
 —
 8,804
7,634
 9
 7
 —
 7,650
Exploration 459
 2,245
 3,979
 —
 6,683
326
 2,799
 3,304
 —
 6,429
Pre-development, reclamation, and other 406
 1,947
 1,872
 —
 4,225
204
 1,988
 1,428
 —
 3,620
Total costs and expenses 9,908
 86,645
 53,276
 —
 149,829
8,400
 97,318
 49,686
 —
 155,404
OTHER INCOME (EXPENSE), NET                   
Fair value adjustments, net 5,279
 (292) —
 —
 4,987
(2,356) (106) —
��—
 (2,462)
Other, net 4,142
 (137) (106) (3,719) 180
4,829
 513
 (902) (3,896) 544
Interest expense, net of capitalized interest (5,083) (353) (4,248) 3,719
 (5,965)(5,258) (367) (4,289) 3,896
 (6,018)
Total other income (expense), net 4,338
 (782) (4,354) —
 (798)(2,785) 40
 (5,191) —
 (7,936)
Income (loss) from continuing operations before income and mining taxes (5,570) 5,803
 12,407
 —
 12,640
(11,185) 1,965
 15,867
 —
 6,647
Income and mining tax (expense) benefit 1,638
 (1,120) (12,467) —
 (11,949)(922) (1,388) (1,407) —
 (3,717)
Income (loss) from continuing operations (3,932) 4,683
 (60) —
 691
(12,107) 577
 14,460
 —
 2,930
Equity income (loss) in consolidated subsidiaries 4,164
 (38) (170) (3,956) —
15,036
 (28) (246) (14,762) —
Income (loss) from discontinued operations 1,009
 (284) (175) —
 550
—
 —
 —
 —
 —
NET INCOME (LOSS) $1,241
 $4,361
 $(405) $(3,956) $1,241
$2,929
 $549
 $14,214
 $(14,762) $2,930
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:                   
Unrealized gain (loss) on debt securities, net of tax (278) —
 —
 —
 (278)(87) —
 —
 —
 (87)
COMPREHENSIVE INCOME (LOSS) $963
 $4,361
 $(405) $(3,956) $963
$2,842
 $549
 $14,214
 $(14,762) $2,843
(1) Excludes amortization.














CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
THREE MONTHS ENDED MARCH 31,JUNE 30, 2017
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations ConsolidatedCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
Revenue $—
 $107,194
 $78,360
 $—
 $185,554
$—
 $95,371
 $54,169
 $—
 $149,540
COSTS AND EXPENSES                   
Costs applicable to sales(1)
 —
 71,202
 43,288
 —
 114,490
—
 67,916
 34,313
 —
 102,229
Amortization 324
 18,104
 20,265
 —
 38,693
298
 15,835
 14,601
 —
 30,734
General and administrative 10,106
 24
 (5) —
 10,125
6,960
 (4) 69
 —
 7,025
Exploration 336
 1,727
 3,189
 —
 5,252
395
 3,217
 4,201
 —
 7,813
Pre-development, reclamation, and other 175
 1,781
 1,881
 —
 3,837
598
 1,890
 1,597
 —
 4,085
Total costs and expenses 10,941
 92,838
 68,618
 —
 172,397
8,251
 88,854
 54,781
 —
 151,886
OTHER INCOME (EXPENSE), NET                   
Loss on debt extinguishments(9,342) —
 —
 —
 (9,342)
Fair value adjustments, net —
 (1,200) —
 —
 (1,200)—
 336
 —
 —
 336
Other, net 15,222
 5,458
 1,533
 (1,414) 20,799
2,000
 2,477
 909
 (1,412) 3,974
Interest expense, net of capitalized interest (3,279) (175) (1,539) 1,414
 (3,579)(3,377) (264) (1,515) 1,412
 (3,744)
Total other income (expense), net 11,943
 4,083
 (6) —
 16,020
(10,719) 2,549
 (606) —
 (8,776)
Income (loss) from continuing operations before income and mining taxes 1,002
 18,439
 9,736
 —
 29,177
(18,970) 9,066
 (1,218) —
 (11,122)
Income and mining tax (expense) benefit 1,588
 (2,434) (10,032) —
 (10,878)3,395
 (938) (1,330) —
 1,127
Income (loss) from continuing operations 2,590
 16,005
 (296) —
 18,299
(15,575) 8,128
 (2,548) —
 (9,995)
Equity income (loss) in consolidated subsidiaries 16,073
 70
 (67) (16,076) —
4,620
 1,139
 (238) (5,521) —
Income (loss) from discontinued operations —
 —
 364
 —
 364
—
 —
 (960) —
 (960)
NET INCOME (LOSS) $18,663
 $16,075
 $1
 $(16,076) $18,663
$(10,955) $9,267
 $(3,746) $(5,521) $(10,955)
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:                   
Unrealized gain (loss) on debt and equity securities, net of tax (2,182) (279) —
 279
 (2,182)
Unrealized gain (loss) on debt securities, net of tax(18) (469) —
 469
 (18)
Reclassification adjustments for impairment of equity securities, net of tax 121
 121
 —
 (121) 121
305
 305
 —
 (305) 305
Reclassification adjustments for realized loss on sale of equity securities, net of tax 1,471
 (369) —
 369
 1,471
Reclassification adjustments for realized gain (loss) on sale of equity securities, net of tax(203) (203) —
 203
 (203)
Other comprehensive income (loss) (590) (527) —
 527
 (590)84
 (367) —
 367
 84
COMPREHENSIVE INCOME (LOSS) $18,073
 $15,548
 $1
 $(15,549) $18,073
$(10,871) $8,900
 $(3,746) $(5,154) $(10,871)
(1) Excludes amortization.

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

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31,JUNE 30, 2018
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations ConsolidatedCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:                   
Cash provided by (used in) activities of continuing operations $(7,938) $5,395
 $22,040
 $(3,956) 15,541
$8,363
 $20,720
 $(15,615) $(14,762) (1,294)
Cash provided by (used in) activities of discontinued operations —
 —
 (2,690) —
 (2,690)—
 —
 —
 —
 —
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (7,938) 5,395
 19,350
 (3,956) 12,851
8,363
 20,720
 (15,615) (14,762) (1,294)
                   
CASH FLOWS FROM INVESTING ACTIVITIES                   
Capital expenditures (83) (14,341) (27,921) —
 (42,345)(101) (12,537) (28,527) —
 (41,165)
Proceeds from the sale of assets —
 60
 —
 —
 60
23
 73
 —
 —
 96
Purchase of investments (361) —
 —
 —
 (361)(39) —
 —
 —
 (39)
Sales of investments 1,067
 552
 —
 —
 1,619
10,753
 388
 —
 —
 11,141
Other —
 —
 (65) —
 (65)(79) 109
 (63) —
 (33)
Investments in consolidated subsidiaries (4,162) 37
 169
 3,956
 —
(15,037) 28
 247
 14,762
 —
Cash provided by (used in) activities of continuing operations (3,539) (13,692) (27,817) 3,956
 (41,092)(4,480) (11,939) (28,343) 14,762
 (30,000)
Cash provided by (used in) activities of discontinued operations —
 —
 (28,470) —
 (28,470)—

—

—
 —
 —
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (3,539)
(13,692)

(56,287) 3,956
 (69,562)(4,480) (11,939) (28,343) 14,762
 (30,000)
CASH FLOWS FROM FINANCING ACTIVITIES:                   
Issuance of notes and bank borrowings, net of issuance costs 15,000
 —
52,577
—
 —
 15,000
Payments on debt, capital leases, and associated costs —
 (2,395) (16,054) —
 (18,449)—
 (2,532) (1,841) —
 (4,373)
Net intercompany financing activity (20,381) (10,946) 31,327
 —
 —
(13,987) 3,354
 10,633
 —
 —
Other (4,606) —
 —
 —
 (4,606)(233) —
 —
 —
 (233)
Cash provided by (used in) activities of continuing operations (9,987) (13,341) 15,273
 —
 (8,055)(14,220) 822
 8,792
 —
 (4,606)
Cash provided by (used in) activities of discontinued operations —
 —
 (22) —
 (22)—
 —

—
 —
 —
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (9,987)
(13,341)

15,251

—

(8,077)(14,220)
822

8,792

—

(4,606)
Effect of exchange rate changes on cash and cash equivalents —
 2
 555
 —
 557
—
 (6) (169) —
 (175)
Less net cash provided by (used in) discontinued operations —
 —
 (32,930) —
 (32,930)—
 —

—
 —
 —
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (21,464)
(21,636)

11,799
 —
 (31,301)(10,337) 9,597
 (35,335) —
 (36,075)
Cash, cash equivalents and restricted cash at beginning of period 56,033
 52,239
 95,130
 —
 203,402
34,569
 30,603
 106,929
 —
 172,101
Cash, cash equivalents and restricted cash at end of period $34,569

$30,603


$106,929

$—

$172,101
$24,232
 $40,200
 $71,594

$—

$136,026




















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

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31,JUNE 30, 2017
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:         
Cash provided by (used in) activities of continuing operations$(5,005) $14,844
 $19,787
 $(5,521) 24,105
Cash provided by (used in) activities of discontinued operations—
 —
 5,175
 —
 5,175
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES(5,005) 14,844
 24,962
 (5,521) 29,280
          
CASH FLOWS FROM INVESTING ACTIVITIES         
Capital expenditures(989) (23,937) (12,181) —
 (37,107)
Proceeds from the sale of assets1
 443
 (8) —
 436
Purchase of investments(8,948) —
 —
 —
 (8,948)
Sales of investments—
 898
 —
 —
 898
Other9
 —
 (61) —
 (52)
Investments in consolidated subsidiaries(550) 823
 240
 (513) —
Cash provided by (used in) activities of continuing operations(10,477) (21,773) (12,010) (513) (44,773)
Cash provided by (used in) activities of discontinued operations—
 —
 (375) —
 (375)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES(10,477) (21,773) (12,385) (513) (45,148)
CASH FLOWS FROM FINANCING ACTIVITIES:         
Issuance of notes and bank borrowings244,958
 —
 —
 —
 244,958
Payments on debt, capital leases, and associated costs(185,538) (2,021) (1,351) —
 (188,910)
Net intercompany financing activity(6,680) 10,886
 (10,240) 6,034
 —
Other(473) —
 —
 —
 (473)
Cash provided by (used in) activities of continuing operations52,267
 8,865
 (11,591) 6,034
 55,575
Cash provided by (used in) activities of discontinued operations—
 —
 (21) —
 (21)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES52,267
 8,865
 (11,612) 6,034
 55,554
Effect of exchange rate changes on cash and cash equivalents—
 —
 328
 —
 328
Less net cash provided by (used in) discontinued operations—
 —
 (338) —
 (338)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH36,785
 1,936
 1,631
 —
 40,352
Cash, cash equivalents and restricted cash at beginning of period76,923
 45,976
 47,558
 —
 170,457
Cash, cash equivalents and restricted cash at end of period$113,708
 $47,912
 $49,189
 $—
 $210,809




















Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:          
Cash provided by (used in) activities of continuing operations $(4,815) $17,183
 $47,644
 $(16,076) 43,936
Cash provided by (used in) activities of discontinued operations —
 —
 11,335
 —
 11,335
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (4,815) 17,183
 58,979
 (16,076) 55,271
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Capital expenditures (319) (16,975) (6,297) —
 (23,591)
Proceeds from the sale of assets 8,916
 6,151
 (48) —
 15,019
Purchase of investments (1,016) —
 —
 —
 (1,016)
Sales of investments 9,157
 863
 —
 —
 10,020
Other 46
 —
 (60) —
 (14)
Investments in consolidated subsidiaries (12,454) (70) 67
 12,457
 —
Cash provided by (used in) activities of continuing operations 4,330
 (10,031) (6,338) 12,457
 418
Cash provided by (used in) activities of discontinued operations —
 —
 (388) —
 (388)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 4,330
 (10,031) (6,726) 12,457
 30
CASH FLOWS FROM FINANCING ACTIVITIES:          
Payments on debt, capital leases, and associated costs —
 (1,874) (1,332) —
 (3,206)
Net intercompany financing activity 14,318
 (9,325) (8,612) 3,619
 —
Other (3,247) —
 —
 —
 (3,247)
Cash provided by (used in) activities of continuing operations 11,071
 (11,199) (9,944) 3,619
 (6,453)
Cash provided by (used in) activities of discontinued operations —
 —
 (20) —
 (20)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 11,071
 (11,199) (9,964) 3,619
 (6,473)
Effect of exchange rate changes on cash and cash equivalents —
 —
 555
 —
 555
Less net cash provided by (used in) discontinued operations —
 —
 5,527
 —
 5,527
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 10,586
 (4,047) 37,317
 —
 43,856
Cash, cash equivalents and restricted cash at beginning of period 66,337
 50,023
 10,241
 —
 126,601
Cash, cash equivalents and restricted cash at end of period $76,923
 $45,976
 $47,558
 $—
 $170,457

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
SIX MONTHS ENDED JUNE 30, 2018
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
Revenue$—
 $192,473
 $140,781
 $—
 $333,254
COSTS AND EXPENSES         
Costs applicable to sales(1)
—
 146,180
 61,406
 —
 207,586
Amortization482
 28,792
 30,962
 —
 60,236
General and administrative16,431
 12
 11
 —
 16,454
Exploration785
 5,044
 7,283
 —
 13,112
Pre-development, reclamation, and other610
 3,935
 3,300
 —
 7,845
Total costs and expenses18,308
 183,963
 102,962
 —
 305,233
OTHER INCOME (EXPENSE), NET         
Fair value adjustments, net2,590
 (398) —
 —
 2,192
Other, net9,304
 376
 (1,008) (7,615) 1,057
Interest expense, net of capitalized interest(10,341) (720) (8,537) 7,615
 (11,983)
Total other income (expense), net1,553
 (742) (9,545) —
 (8,734)
Income (loss) from continuing operations before income and mining taxes(16,755) 7,768
 28,274
 —
 19,287
Income and mining tax (expense) benefit716
 (2,508) (13,874) —
 (15,666)
Income (loss) from continuing operations(16,039) 5,260
 14,400
 —
 3,621
Equity income (loss) in consolidated subsidiaries19,200
 (66) (416) (18,718) —
Income (loss) from discontinued operations1,010
 (284) (176) —
 550
NET INCOME (LOSS)$4,171
 $4,910
 $13,808
 $(18,718) $4,171
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:         
Unrealized gain (loss) on debt securities, net of tax(365) —
 —
 —
 (365)
COMPREHENSIVE INCOME (LOSS)$3,806
 $4,910
 $13,808
 $(18,718) $3,806
(1) Excludes amortization.



































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

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
SIX MONTHS ENDED JUNE 30, 2017
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
Revenue$—
 $202,565
 $132,529
 $—
 $335,094
COSTS AND EXPENSES         
Costs applicable to sales(1)
—
 139,118
 77,601
 —
 216,719
Amortization622
 33,939
 34,866
 —
 69,427
General and administrative17,066
 20
 64
 —
 17,150
Exploration731
 4,944
 7,390
 —
 13,065
Pre-development, reclamation, and other773
 3,671
 3,478
 —
 7,922
Total costs and expenses19,192
 181,692
 123,399
 —
 324,283
OTHER INCOME (EXPENSE), NET         
Loss on debt extinguishments(9,342) —
 —
 —
 (9,342)
Fair value adjustments, net—
 (864) —
 —
 (864)
Other, net17,222
 7,935
 2,442
 (2,826) 24,773
Interest expense, net of capitalized interest(6,656) (439) (3,054) 2,826
 (7,323)
Total other income (expense), net1,224
 6,632
 (612) —
 7,244
Income (loss) from continuing operations before income and mining taxes(17,968) 27,505
 8,518
 —
 18,055
Income and mining tax (expense) benefit4,983
 (3,372) (11,362) —
 (9,751)
Income (loss) from continuing operations(12,985) 24,133
 (2,844) —
 8,304
Equity income (loss) in consolidated subsidiaries20,693
 1,209
 (305) (21,597) —
Income (loss) from discontinued operations—
 —
 (596) —
 (596)
NET INCOME (LOSS)$7,708
 $25,342
 $(3,745) $(21,597) $7,708
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:         
Unrealized gain (loss) on debt and equity securities, net of tax(2,200) (748) —
 748
 (2,200)
Reclassification adjustments for impairment of equity securities, net of tax426
 426
 —
 (426) 426
Reclassification adjustments for realized loss on sale of equity securities, net of tax1,268
 (572) —
 572
 1,268
Other comprehensive income (loss)(506) (894) —
 894
 (506)
COMPREHENSIVE INCOME (LOSS)$7,202
 $24,448
 $(3,745) $(20,703) $7,202
(1) Excludes amortization.

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

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2018
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:         
Cash provided by (used in) activities of continuing operations$425
 $26,115
 $6,425
 $(18,718) 14,247
Cash provided by (used in) activities of discontinued operations—
 —
 (2,690) —
 (2,690)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES425
 26,115
 3,735
 (18,718) 11,557
          
CASH FLOWS FROM INVESTING ACTIVITIES         
Capital expenditures(184) (26,878) (56,448) —
 (83,510)
Proceeds from the sale of assets23
 133
 —
 —
 156
Purchase of investments(400) —
 —
 —
 (400)
Sales of investments11,820
 940
 —
 —
 12,760
Other(79) 109
 (128) —
 (98)
Investments in consolidated subsidiaries(19,199) 65
 416
 18,718
 —
Cash provided by (used in) activities of continuing operations(8,019) (25,631) (56,160) 18,718
 (71,092)
Cash provided by (used in) activities of discontinued operations—
 —
 (28,470) —
 (28,470)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES(8,019)
(25,631)
(84,630) 18,718
 (99,562)
CASH FLOWS FROM FINANCING ACTIVITIES:         
Issuance of notes and bank borrowings, net of issuance costs15,000
 —

—
 —
 15,000
Payments on debt, capital leases, and associated costs—
 (4,927) (17,895) —
 (22,822)
Net intercompany financing activity(34,368) (7,592) 41,960
 —
 —
Other(4,839) —
 —
 —
 (4,839)
Cash provided by (used in) activities of continuing operations(24,207) (12,519) 24,065
 —
 (12,661)
Cash provided by (used in) activities of discontinued operations—
 —
 (22) —
 (22)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES(24,207)
(12,519)
24,043

—

(12,683)
Effect of exchange rate changes on cash and cash equivalents—
 (4) 386
 —
 382
Less net cash provided by (used in) discontinued operations—
 —
 (32,930) —
 (32,930)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(31,801)
(12,039)
(23,536) —
 (67,376)
Cash, cash equivalents and restricted cash at beginning of period56,033
 52,239
 95,130
 —
 203,402
Cash, cash equivalents and restricted cash at end of period$24,232

$40,200

$71,594

$—

$136,026

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

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2017
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:         
Cash provided by (used in) activities of continuing operations$(9,820) $32,027
 $67,430
 $(21,597) 68,040
Cash provided by (used in) activities of discontinued operations—
 —
 16,510
 —
 16,510
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES(9,820) 32,027
 83,940
 (21,597) 84,550
          
CASH FLOWS FROM INVESTING ACTIVITIES         
Capital expenditures(1,308) (40,912) (18,478) —
 (60,698)
Proceeds from the sale of assets8,917
 6,594

(56) —
 15,455
Purchase of investments(9,964) —

—
 —
 (9,964)
Sales of investments9,157
 1,761

—
 —
 10,918
Other55
 —
 (121) —
 (66)
Investments in consolidated subsidiaries(13,004) 753

(9,346) 21,597
 —
Cash provided by (used in) activities of continuing operations(6,147) (31,804) (28,001) 21,597
 (44,355)
Cash provided by (used in) activities of discontinued operations—
 —
 (763) —
 (763)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES(6,147) (31,804) (28,764) 21,597
 (45,118)
CASH FLOWS FROM FINANCING ACTIVITIES:         
Issuance of notes and bank borrowings244,958
 —
 —
 —
 244,958
Payments on debt, capital leases, and associated costs(185,538) (3,895)
(2,683) —
 (192,116)
Net intercompany financing activity7,638
 1,561

(9,199) —
 —
Other(3,720) —

—
 —
 (3,720)
Cash provided by (used in) activities of continuing operations63,338
 (2,334) (11,882) —
 49,122
Cash provided by (used in) activities of discontinued operations—
 —
 (41) —
 (41)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES63,338
 (2,334) (11,923) —
 49,081
Effect of exchange rate changes on cash and cash equivalents—
 —
 884
 —
 884
Less net cash provided by (used in) discontinued operations—
 —
 5,189
 —
 5,189
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH47,371
 (2,111) 38,948
 —
 84,208
Cash, cash equivalents and restricted cash at beginning of period66,337
 50,023
 10,241
 —
 126,601
Cash, cash equivalents and restricted cash at end of period$113,708
 $47,912
 $49,189
 $—
 $210,809



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

CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31,JUNE 30, 2018
In thousands Coeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations ConsolidatedCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
ASSETS               
CURRENT ASSETS                   
Cash and cash equivalents $22,111
 $30,603
 $106,929
 $—
 $159,643
$11,745
 $40,200
 $71,594
 $—
 $123,539
Receivables 15,895
 5,084
 14,885
 —
 35,864
17,522
 5,430
 17,807
 —
 40,759
Ore on leach pads —
 75,584
 —
 —
 75,584
—
 75,261
 —
 —
 75,261
Inventory —
 31,512
 30,211
 —
 61,723
—
 27,229
 34,925
 —
 62,154
Prepaid expenses and other 8,892
 3,193
 6,118
 —
 18,203
4,517
 898
 6,510
 —
 11,925
 46,898
 145,976
 158,143
 —
 351,017
33,784
 149,018
 130,836
 —
 313,638
NON-CURRENT ASSETS                   
Property, plant and equipment, net 3,141
 165,578
 97,438
 —
 266,157
3,006
 169,624
 100,707
 —
 273,337
Mining properties, net 6,980
 219,000
 617,841
 —
 843,821
6,685
 221,403
 633,291
 —
 861,379
Ore on leach pads —
 67,430
 —
 —
 67,430
—
 70,043
 —
 —
 70,043
Restricted assets 14,352
 227
 7,537
 —
 22,116
14,361
 227
 7,047
 —
 21,635
Equity and debt securities 36,772
 545
 —
 —
 37,317
23,710
 94
 —
 —
 23,804
Receivables 24,047
 —
 31,381
 —
 55,428
24,047
 —
 28,999
 —
 53,046
Net investment in subsidiaries 423,448
 332
 694
 (424,474) —
458,186
 304
 448
 (458,938) —
Other 317,146
 11,820
 3,431
 (313,748) 18,649
299,038
 11,923
 3,774
 (295,713) 19,022
TOTAL ASSETS $872,784
 $610,908
 $916,465
 $(738,222) $1,661,935
$862,817
 $622,636
 $905,102
 $(754,651) $1,635,904
                   
LIABILITIES AND STOCKHOLDERS’ EQUITY                   
CURRENT LIABILITIES                   
Accounts payable $3,419
 $21,634
 $19,811
 $—
 $44,864
$1,603
 $21,982
 $29,843
 $—
 $53,428
Other accrued liabilities 16,643
 12,059
 76,447
 —
 105,149
7,320
 12,781
 41,563
 —
 61,664
Debt —
 9,977
 7,063
 —
 17,040
—
 14,956
 6,789
 —
 21,745
Reclamation —
 2,313
 1,464
 —
 3,777
—
 2,313
 1,464
 —
 3,777
 20,062
 45,983
 104,785
 —
 170,830
8,923
 52,032
 79,659
 —
 140,614
NON-CURRENT LIABILITIES                   
Debt 360,280
 31,116
 319,336
 (313,748) 396,984
360,471
 30,503
 302,713
 (295,713) 397,974
Reclamation —
 83,392
 35,762
 —
 119,154
—
 84,595
 36,669
 —
 121,264
Deferred tax liabilities 2,641
 4,978
 97,605
 —
 105,224
4,758
 4,867
 93,001
 —
 102,626
Other long-term liabilities 2,602
 2,751
 50,079
 —
 55,432
2,606
 2,733
 49,316
 —
 54,655
Intercompany payable (receivable) (327,111) 307,016
 20,095
 —
 —
(332,713) 311,987
 20,726
 —
 —
 38,412
 429,253
 522,877
 (313,748) 676,794
35,122
 434,685
 502,425
 (295,713) 676,519
STOCKHOLDERS’ EQUITY                   
Common stock 1,862
 19,630
 195,020
 (214,650) 1,862
1,871
 19,630
 195,020
 (214,650) 1,871
Additional paid-in capital 3,355,710
 145,024
 1,882,610
 (2,027,634) 3,355,710
3,357,318
 144,724
 1,902,610
 (2,047,334) 3,357,318
Accumulated deficit (2,542,899) (28,982) (1,788,827) 1,817,810
 (2,542,898)(2,539,967) (28,435) (1,774,612) 1,803,046
 (2,539,968)
Accumulated other comprehensive income (loss) (363) —
 —
 —
 (363)(450) —
 —
 —
 (450)
 814,310
 135,672
 288,803
 (424,474) 814,311
818,772
 135,919
 323,018
 (458,938) 818,771
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $872,784
 $610,908
 $916,465
 $(738,222) $1,661,935
$862,817
 $622,636
 $905,102
 $(754,651) $1,635,904

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

CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2017
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
ASSETS       
CURRENT ASSETS         
Cash and cash equivalents$44,662
 $52,239
 $95,131
 $—
 $192,032
Receivables137
 7,922
 11,010
 —
 19,069
Ore on leach pads—
 73,752
 —
 —
 73,752
Inventory—
 29,769
 28,461
 —
 58,230
Prepaid expenses and other7,824
 2,816
 4,413
 —
 15,053
Assets held for sale—
 —
 91,421
 —
 91,421
 52,623
 166,498
 230,436
 —
 449,557
NON-CURRENT ASSETS         
Property, plant and equipment, net4,007
 161,487
 89,243
 —
 254,737
Mining properties, net—
 216,281
 613,288
 —
 829,569
Ore on leach pads—
 65,393
 —
 —
 65,393
Restricted assets13,251
 227
 7,369
 —
 20,847
Equity and debt securities33,569
 1,268
 —
 —
 34,837
Receivables—
 —
 28,750
 —
 28,750
Net investment in subsidiaries422,074
 223
 (18) (422,279) —
Other320,335
 11,040
 2,854
 (316,744) 17,485
TOTAL ASSETS$845,859
 $622,417
 $971,922
 $(739,023) $1,701,175
          
LIABILITIES AND STOCKHOLDERS’ EQUITY         
CURRENT LIABILITIES         
Accounts payable$3,607
 $24,534
 $20,451
 $—
 $48,592
Other accrued liabilities13,205
 19,262
 62,463
 —
 94,930
Debt—
 9,215
 21,538
 —
 30,753
Reclamation—
 2,313
 1,464
 —
 3,777
Liabilities held for sale—
 —
 50,677
 —
 50,677
 16,812
 55,324
 156,593
 —
 228,729
NON-CURRENT LIABILITIES         
Debt345,088
 28,313
 323,912
 (316,744) 380,569
Reclamation—
 82,021
 35,034
 —
 117,055
Deferred tax liabilities4,110
 5,127
 95,911
 —
 105,148
Other long-term liabilities2,311
 3,063
 49,323
 —
 54,697
Intercompany payable (receivable)(337,439) 317,759
 19,680
 —
 —
 14,070
 436,283
 523,860
 (316,744) 657,469
STOCKHOLDERS’ EQUITY         
Common stock1,856
 19,630
 195,020
 (214,650) 1,856
Additional paid-in capital3,357,345
 149,194
 1,885,046
 (2,034,240) 3,357,345
Accumulated deficit(2,546,743) (34,551) (1,788,597) 1,823,148
 (2,546,743)
Accumulated other comprehensive income (loss)2,519
 (3,463) —
 3,463
 2,519
 814,977
 130,810
 291,469
 (422,279) 814,977
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$845,859
 $622,417
 $971,922
 $(739,023) $1,701,175

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

NOTE 20 – COMMITMENTS AND CONTINGENCIES
Palmarejo Gold Stream
Coeur Mexicana, S.A. de C.V. (“Coeur Mexicana”), a subsidiary of Coeur, sells 50% of Palmarejo gold production (excluding production from the Paramount properties acquired in 2015) to Franco-Nevada under a gold stream agreement for the lesser of $800 or spot price per ounce. In 2015, Coeur Mexicana received a $22.0 million deposit toward future deliveries under the gold stream agreement. In accordance with generally accepted accounting principles, although Coeur has satisfied its contractual obligation to repay the deposit to Franco-Nevada, the deposit is accounted for as deferred revenue and is recognized as revenue on a units of production basis as ounces are sold to Franco-Nevada. As of March 31,June 30, 2018, the remaining unamortized balance was $14.3$13.8 million.
Silvertip Contingent Consideration
A total of up to $50.0 million of contingent consideration, payable in cash and common stock, is payable in conjunction with the October 2017 Silvertip acquisition. The contingent consideration is based on the achievement of two milestones, which the Company has determined to be probable at March 31,June 30, 2018. The first milestone payment of $25.0 million is contingent upon receipt of a permit expansion for a sustained mining and milling rate of 1,000 tonnes per day. The permit application mustwas required to be submitted to the British Columbia Ministry of Energy and Mining no later than June 2018 and was submitted on April 30, 2018. The second milestone payment of up to $25.0 million is contingent upon the amount of resource tonnes added as of December 31, 2019. The maximum payment of $25.0 million can be earned if the total resource reaches 3.7 million tonnes. The former JDS Silver Holdings Ltd. shareholders will receive $5.0 million for a total resource of at least 2.5 million tonnes and $5.0 million for every 0.3 million tonnes over 2.5 million tonnes, up to 3.7 million tonnes.

NOTE 21 – DISCONTINUED OPERATIONS
In December 2017, the Company and certain of its subsidiaries entered into a definitive agreement (as amended, the “Agreement”) to sell all of the outstanding capital stock of Manquiri, which is the operator of the San Bartolomé mine and processing facility (the “Manquiri Divestiture”). On February 28, 2018, the Manquiri Divestiture was completed, and, in accordance with the Agreement, Manquiri was sold to Ag-Mining Investments, AB, a privately-held Swedish company owned by a group of individuals with extensive mining experience in Latin America.company.
Coeur and its subsidiaries received the following consideration:
2.0% net smelter returns royalty (the “NSR”) payable to Coeur on all metals processed through the San Bartolomé Mine’s processing facility, commencing immediately upon the closing of the Transaction, valued at $7.1 million.
Pre-closing value added tax refunds valued at $12.7 million that will be collected or received by Manquiri in the future will be paid to Coeur (net of collection costs).
Eighteen-month promissory notes valued at $26.9 million payable to Coeur and certain of its subsidiaries representing Manquiri’s cash and cash equivalents on the date of closing of the Manquiri Divestiture, and providing for repayment beginning in October 2018.
The Company recognized a liability of approximately $5.7 million for certain post-closing covenants, guaranties and indemnification obligations on the part of the Company pursuant to the Agreement

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

The sale of Manquiri and San Bartolomé is expected to have a major effect on the Company's results and operations. Accordingly, San Bartolomé’s operations for the three and six months ended March 31,June 30, 2018 and 2017 are classified on the consolidated statements of operations and comprehensive income (loss) as Income (loss) from discontinued operations. The major classes of line items constituting the pretax profit or loss for the three and six months ended March 31,June 30, 2018 and 2017 are as follows:follows (in thousands):
Three months ended March 31,Three months ended June 30, Six months ended June 30,
2018 20172018 2017 2018 2017
Revenue$12,346
 $20,584
$—
 $23,814
 $12,346
 $44,398
COSTS AND EXPENSES          
Costs applicable to sales(1)
12,269
 18,222
—
 23,392
 12,269
 41,614
Amortization—
 1,411
—
 2,212
 —
 3,623
General and administrative41
 8
—
 17
 41
 25
Pre-development, reclamation, and other265
 744
—
 281
 265
 1,025
OTHER INCOME (EXPENSE), NET          
Interest expense, net of capitalized interest(3) (6)—
 (6) (3) (12)
Other, net(260) 340
—
 161
 (260) 501
Pretax profit (loss) on discontinued operations related to major classes of pretax profit (loss)(492) 533
—
 (1,933) (492) (1,400)
Pretax gain on the disposal of the discontinued operation1,525
 —
—
 —
 1,525
 —
Total pretax gain or loss on discontinued operations1,033
 533
—
 (1,933) 1,033
 (1,400)
Income and mining tax (expense) benefit(483) (169)—
 973
 (483) 804
Income (loss) from discontinued operations$550
 $364
$—
 $(960) $550
 $(596)
(1) Excludes amortization.
Net cash provided by operating activities was $5.2 million for the three months ended June 30, 2017. Net cash used in operating activities from San Bartolomé was $2.7 million for the threesix months ended March 31,June 30, 2018 compared to net cash provided by operating activities of $11.3$16.5 million for the six months ended June 30, 2017, respectively. Net cash used in investing activities from San Bartolomé was $0.4 million for the three months ended March 31, 2017, respectively.June 30, 2017. Net cash used in investing activities from San Bartolomé were $28.5 million and $0.4$0.8 million for the threesix months ended March 31,June 30, 2018 and 2017, respectively.

NOTE 22 – ADDITIONAL BALANCE SHEET DETAIL AND SUPPLEMENTAL CASH FLOW INFORMATION
Accrued liabilities and other consist of the following:
March 31, 2018 December 31, 2017
In thousandsJune 30, 2018 December 31, 2017
Accrued salaries and wages$15,552
 $26,559
$16,745
 $26,559
Income and mining taxes36,642
 25,788
2,649
 25,788
Silvertip contingent consideration24,543
 24,393
24,694
 24,393
Accrued operating costs17,174
 12,323
12,290
 12,323
Taxes other than income and mining5,644
 4,354
3,741
 4,354
Accrued interest payable5,594
 1,513
1,545
 1,513
Accrued liabilities and other$105,149
 $94,930
$61,664
 $94,930

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

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows:flows for the three and six months ended June 30, 2018 and 2017:
March 31, 2018 March 31, 2017
In thousandsJune 30, 2018 June 30, 2017
Cash and cash equivalents$159,643
 $160,636
$123,539
 $200,979
Restricted cash equivalents12,458
 9,821
12,487
 9,830
Total cash, cash equivalents and restricted cash shown in the statement of cash flows172,101
 170,457
136,026
 210,809



Item 2.        Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Coeur Mining, Inc. and its subsidiaries (collectively the “Company”,“our” “our”, or “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of these measures, please see “Non-GAAP Financial Performance Measures” at the end of this item. We provide certain operational and financial data on a silver equivalent basis, converting gold to silver at a historical 60:1 ratio of silver ounces to gold ounces, unless otherwise noted. We also provide realized silver equivalent data determined by average spot silver and gold prices during the relevant period.
Overview
We are a gold, silver, zinc and lead producer with mines located in the United States, Mexico and Canada and exploration projects in the United States and Mexico. The Palmarejo complex, Rochester, Kensington and Wharf mines constitute our principal sources of revenue.
In October 2017, the Company added a new mine to Coeur’s North America-focused platform with the acquisition of the high-grade silver-zinc-lead Silvertip mine located in northern British Columbia, Canada. The Silvertip mine commenced milling in the first quarter of 2018, and is expected to commence commercial production in the secondthird quarter of 2018. In February 2018, the Company completed the Manquiri Divestiture, which we determined to represent a strategic shift to a North America-focused mining portfolio with a major effect on the Company’s results and operations; therefore, San Bartolomé’s results of operations are reported as discontinued operations for all periods.periods presented. In the following discussion and analysis, the operating statistics, results of operations, cash flows and financial condition that we present and discuss are those of our continuing operations unless otherwise indicated.
The Company's strategy is to discover, acquire, develop and operate low-cost silver and gold mines, which may include base metals such as zinc and lead, that produce long-term cash flow, provide opportunities for growth through continued exploration, and generate superior and sustainable returns for stockholders. Management focuses on maximizing net cash flow through identifying and implementing revenue enhancement opportunities, reducing operating and non-operating costs, exercising consistent capital discipline, and efficientmanaging working capital management.efficiently.
FirstSecond Quarter Highlights
Production from continuing operations of 8.38.8 million silver equivalent ounces, consisting of 3.2 million silver ounces and 85,38394,052 gold ounces
Sales from continuing operations of 8.48.9 million silver equivalent ounces, consisting of 3.2 million silver ounces and 87,15394,455 gold ounces
Net income from continuing operations of $0.7$2.9 million, ($0.00or $0.02 per share)share, and adjusted net income of $0.7$1.1 million, ($0.00or $0.01 per share)share, (see “Non-GAAP Financial Performance Measures”)
Costs applicable to sales from continuing operations were $9.77 per silver equivalent ounce ($8.55$8.29 per average spot silver equivalent ounce ($9.47 per silver equivalent ounce) and $970$1,040 per gold equivalent ounce (see “Non-GAAP Financial Performance Measures”)
All-in sustaining costs from continuing operations were $17.33$14.73 per average spot silver equivalent ounce ($14.4417.71 per average spot silver equivalent ounce) (see “Non-GAAP Financial Performance Measures”)
Operating cash flow fromused in continuing operations of $15.5$1.3 million and adjusted EBITDA from continuing operations of $49.5$48.4 million (see “Non-GAAP Financial Performance Measures”)
Cash and cash equivalents of $159.6$123.5 million at March 31,June 30, 2018
Completed the Manquiri Divestiture for total consideration of $46.7 million consisting of a 2.0% NSR valued at $7.1 million, pre-closing value added tax refunds valued at $12.7 million payable to the Company, and $26.9 million of promissory notes payable in eighteen months to the Company, with payments beginning in October 2018


Selected Financial and Operating Results
Three months ended March 31,Three months ended June 30, Six months ended June 30,
2018 2017
In thousands2018 2017 2018 2017
Financial Results from Continuing Operations:          
Metal sales$163,267
 $185,554
Revenue$169,987
 $149,540
 $333,254
 $335,094
Net income (loss)$691
 $18,299
$2,930
 $(9,995) $3,621
 $8,304
Net income (loss) per share, diluted$0.00
 $0.10
$0.02
 $(0.06) $0.02
 $0.05
Adjusted net income (loss)(1)
$680
 $6,766
$1,061
 $(1,343) $1,403
 $5,423
Adjusted net income (loss) per share, diluted(1)
$0.00
 $0.04
$0.01
 $(0.01) $0.01
 $0.03
EBITDA(1)
$49,382
 $71,449
$42,124
 $23,356
 $91,506
 $94,805
Adjusted EBITDA(1)
$49,524
 $54,514
$48,431
 $31,920
 $97,157
 $86,434
Operating Results from Continuing Operations:          
Silver ounces produced3,182,110
 2,717,869
3,203,899
 2,690,421
 6,386,009
 5,408,290
Gold ounces produced85,383
 88,218
94,052
 82,819
 179,435
 171,037
Silver equivalent ounces produced8,305,090

8,010,949
8,847,019

7,659,561

17,152,109

15,670,510
Silver ounces sold3,160,913
 3,325,706
3,202,804
 2,688,790
 6,363,717
 6,014,496
Gold ounces sold87,153
 110,874
94,455
 86,194
 181,608
 197,068
Silver equivalent ounces sold8,390,090
 9,978,120
8,870,100
 7,860,417
 17,260,190
 17,838,597
Average realized price per silver ounce$16.70
 $17.49
$16.48
 $16.95
 $16.59
 $17.25
Average realized price per gold ounce$1,268
 $1,149
$1,241
 $1,206
 $1,254
 $1,174
Costs applicable to sales per silver equivalent ounce(1)
$9.77
 $10.61
$9.47
 $12.11
 $9.62
 $11.25
Costs applicable to sales per average spot silver equivalent ounce(1)
$8.55
 $9.80
$8.29
 $11.04
 $8.42
 $10.31
Costs applicable to sales per gold equivalent ounce(1)
$970
 $788
$1,040
 $866
 $1,007
 $825
All-in sustaining costs per silver equivalent ounce(1)
$17.33
 $14.77
$17.71
 $17.90
 $17.53
 $16.15
All-in sustaining costs per average spot silver equivalent ounce(1)
$14.44
 $13.29
$14.73
 $15.66
 $14.58
 $14.34
Financial and Operating Results from Discontinued Operations:(2)
          
Income (loss) from discontinued operations$550
 $364
$—
 $(960) $550
 $(596)
Silver ounces produced643,078
 1,214,507
—
 1,284,561
 643,078
 2,499,068
Gold ounces produced78
 —
—
 —
 78
 —
Silver equivalent ounces produced647,758
 1,214,507
—
 1,284,561
 647,758
 2,499,068
Silver ounces sold704,479
 1,148,006
—
 1,398,038
 704,479
 2,546,044
Gold ounces sold292
 —
—
 —
 292
 —
Silver equivalent ounces sold721,999
 1,148,006
—
 1,398,038
 721,999
 2,546,044
(1)
See “Non-GAAP Financial Performance Measures.”
(2)Reported production and financial results include operations through February 28, 2018.


Consolidated Financial Results
Three Months Ended March 31,June 30, 2018 compared to Three Months Ended March 31,June 30, 2017
Net Income (Loss) from Continuing Operations
Net income from continuing operations was $0.7$2.9 million, ($0.00or $0.02 per share)share, compared to Netnet loss of $10.0 million, or $0.06 per share. The increase in net income of $18.3 million ($0.10 per share).  The decreasein Net income from continuing operations is primarily due to lowerhigher ounces sold and a $21.1higher operating margin per consolidated silver equivalent ounce and a $9.3 million gainloss on the sale of the Joaquin projectdebt extinguishment in the firstsecond quarter of 2017, partially offset by higher operating margin per consolidated silver equivalent ounce.interest expense and a $2.3 million gain on the repurchase of the Rochester royalty obligation in the second quarter of 2017.
Revenue
Metal sales were lowerRevenue was higher due to higher salessilver and gold production and an increase in the first quarteraverage realized gold prices of 2017 resulting from holdover ounces from 2016 and3%, partially offset by a decrease in average realized silver prices of 5%, partially offset by an increase in average realized gold prices of 10%3%. The Company sold 3.2 million silver ounces and 87,15394,455 gold ounces, compared to sales of 3.32.7 million silver ounces and 110,87486,194 gold ounces. Gold contributed 68%69% of sales and silver contributed 32%31%, compared to 69%70% of sales from gold and 31%30% from silver.
Costs Applicable to Sales
Costs applicable to sales decreasedincreased due to lowerhigher silver and gold ounces sold and higher costs applicable to sales per gold equivalent ounce, partially offset by lower costs applicable to sales per silver equivalent ounce, partially offset by higher costs applicable to sales per gold equivalent ounce. For a complete discussion of costs applicable to sales, see Results of Operations below.
Amortization
Amortization decreased $7.9$1.3 million, or 20%4%, primarily due to higher life of mine reserves and lower silver and gold ounces sold.sold at Kensington.
Expenses
General and administrative expenses decreased $1.3increased $0.6 million, or 13%9%, primarily due to lowerhigher compensation severance and professional service costs.
Exploration expense increaseddecreased $1.4 million, or 27%18%, primarily due to a drilling campaign at La Preciosa in the Company’s expansion of near-mine drilling efforts at Palmarejo, Kensington, and regional exploration focused on projects in Nevada and Mexico.three months ended June 30, 2017.
Pre-development, reclamation, and other expenses increased $0.4decreased $0.5 million, or 10%11%, due to higher asset retirement obligation accretionlower transaction-related costs and reduced activity at Palmarejo.La Preciosa.
Other Income and Expenses
During the second quarter of 2017, the Company incurred a $9.3 million loss in connection with the repurchase of the 7.875% Senior Notes due 2021 (the “2021 Senior Notes”) concurrent with the completed offering of the 2024 Senior Notes.
Non-cash fair value adjustments, net, were a gainloss of $5.0$2.5 million compared to a lossgain of $1.2$0.3 million, due to unrealized losses of $8.0 million and realized gains of $4.8$5.5 million on equity securities and a favorable fair value adjustment on zinc hedges.securities. Effective January 1, 2018, as a result of ASU 2016-01, changes in the fair value of equity investments are recognized as fair value adjustments instead of other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income (Loss).
Interest expense (net of capitalized interest of $0.1$0.2 million) increased to $6.0 million from $3.6$3.7 million, primarily due to higher average debt levels related to the 2024 Senior Notes and the Facility.
Other, net decreased to $0.2$0.5 million, primarily due to a $21.1$2.3 million gain on the salerepurchase of the Joaquin project in ArgentinaRochester royalty obligation in the firstsecond quarter of 2017.
Income and Mining Taxes
During the firstsecond quarter of 2018, the Company reported estimated income and mining tax expense of approximately $11.9$3.7 million resulting in an effective tax rate of 94.5%55.9%. This compares to estimated income tax expensebenefit of $10.9$1.1 million for an effective tax rate of 37.3%10.1% during the firstsecond quarter of 2017.

The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:
Three months ended March 31,Three months ended June 30,
2018 20172018 2017
In thousandsIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefitIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefit
United States$1,187
$517
 $20,653
$(1,827)$(11,334)$(2,309) $(6,563)$2,315
Argentina254
10
 (328)1,124
(180)(108) (129)945
Canada(2,155)1,199
 6
940
Mexico13,126
(13,222) 8,650
(9,923)20,542
(2,499) (2,195)(4,766)
Other jurisdictions(1,927)746
 202
(252)(226)—
 (2,241)1,693
$12,640
$(11,949) $29,177
$(10,878)$6,647
$(3,717) $(11,122)$1,127
The Company’s effective income and mining tax rate is a function of the combined effective tax rates and foreign exchange rates in the jurisdictions in which it operates. Variations in the jurisdictional mix of income and loss and foreign exchange rates result in significant fluctuations in the consolidated effective tax rate, along with mining taxes, uncertain tax positions, and a full valuation allowance on deferred tax assets related to losses in the United States and certain foreign jurisdictions. Fluctuations in foreign exchange rates on deferred tax balances decreased income and mining tax expense by $4.5 million and increased income and mining tax expense by $3.6 million and $5.6$3.0 million for the three months ended March 31,June 30, 2018 and 2017, respectively, predominatelypredominantly due to the strengtheningMexican Peso.
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 Mexican Peso. Additionally, favorablerelated 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.
Six Months Ended June 30, 2018 compared to Six Months Ended June 30, 2017
Net Income (Loss) from Continuing Operations
Net income from continuing operations was $3.6 million, or $0.02 per share, compared to net income of $8.3 million, or $0.05 per share. The decrease in net income from continuing operations is due to a $21.1 million gain on the sale of the Joaquin project and a $2.3 million gain on the repurchase of the Rochester royalty obligation in 2017, partially offset by a higher operating resultsmargin per consolidated silver equivalent ounce during the first half of 2018 and a $9.3 million loss on debt extinguishment in 2017.
Revenue
Revenue was lower resulting from holdover gold ounces from 2016 that were sold in the first quarter of 2017 and a decrease in average realized silver prices of 4%, partially offset by higher silver ounces sold and an increase in average realized gold prices of 7%. The Company sold 6.4 million silver ounces and 181,608 gold ounces, compared to sales of 6.0 million silver ounces and 197,068 gold ounces. Gold contributed 68% of sales and silver contributed 32%, compared to 69% of sales from gold and 31% from silver.
Costs Applicable to Sales
Costs applicable to sales decreased primarily due to lower costs applicable to sales per silver equivalent ounce at Palmarejo, contributedpartially offset by higher costs applicable to sales per gold equivalent ounce. For a complete discussion of costs applicable to sales, see Results of Operations below.
Amortization
Amortization decreased $9.2 million or 13%, due to higher life of mine reserves at Kensington and Palmarejo and lower ounces sold at Kensington.
Expenses
General and administrative expenses decreased $0.7 million or 4%, primarily due to lower professional service costs.
Exploration expense remained comparable at $13.1 million.

Pre-development, reclamation, and other expenses decreased $0.1 million or 1%, due to lower transaction-related costs and reduced activity at La Preciosa.
Other Income and Expenses
During the second half of 2017, the Company incurred a $9.3 million loss in connection with the repurchase of the 2021 7.875% Senior Notes concurrent with the completed offering of the 2024 5.875% Senior Notes.
Non-cash fair value adjustments, net, were a gain of $2.2 million compared to a loss of $0.9 million due to unrealized losses of $3.2 million and realized gains of $5.2 million on equity securities and a favorable fair value adjustment on zinc hedges. Effective January 1, 2018, as a result of ASU 2016-01, changes in the fair value of equity investments are recognized as fair value adjustments instead of other comprehensive income (loss) in the Condensed Consolidated Statements of Comprehensive Income (Loss).
Interest expense (net of capitalized interest of $0.3 million) increased to $12.0 million from $7.3 million, due to higher average debt levels related to the 2024 Senior Notes and the Facility.
Other, net decreased to $1.1 million, primarily due to a $21.1 million gain on the sale of the Joaquin project and a $2.3 million gain on the repurchase of the Rochester royalty obligation in 2017.
Income and Mining Taxes
During the first half of 2018, the Company reported estimated income and mining tax expense of approximately $15.7 million resulting in Mexico.an effective tax rate of 81.2%. This compares to estimated income tax expense of $9.8 million for an effective tax rate of 54.0% during the half quarter of 2017.
The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:
 Six months ended June 30,
 2018 2017
In thousandsIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefit
United States$(10,147)$(1,792) $14,090
$213
Argentina74
(97) (457)2,070
Canada(3,909)2,044
 8
908
Mexico33,669
(15,821) 6,455
(14,689)
Other jurisdictions(400)—
 (2,041)1,747
 $19,287
$(15,666) $18,055
$(9,751)
The Company’s effective income and mining tax rate is a function of the combined effective tax rates and foreign exchange rates in the jurisdictions in which it operates. Variations in the jurisdictional mix of income and loss and foreign exchange rates result in significant fluctuations in the consolidated effective tax rate, along with income and mining taxes, uncertain tax positions, and a full valuation allowance on deferred tax assets related to losses in the United States and certain foreign jurisdictions. Fluctuations in foreign exchange rates on deferred tax balances decreased income and mining tax expense by $0.9 million and increased income and mining tax expense by $8.6 million for the six months ended June 30, 2018 and 2017, respectively. The 2018 fluctuation was predominantly due to the Canadian Dollar and the 2017 fluctuation was predominantly due to the Mexican Peso.
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.
Income (loss) from Discontinued Operations
In respect of San Bartolomé’s operating results, income increased $0.2$1.1 million, primarily due to a $1.5 million gain on the sale of San Bartolomé in the first quarter of 2018, partially offset by lower production and higher unit costs.

2018 Outlook
The Company is maintaining its full-yearCoeur's 2018 production guidance has been revised to reflect higher expected silver and relatedgold production at Palmarejo due to higher-than-projected grades during the first half of the year. The Company’s cost guidance.guidance has been reduced to account for strong first half cost performance at Palmarejo, timing of anticipated commercial production at Silvertip and accelerated investment in near-mine exploration.
2018 Production Outlook
SilverGoldZincLead
Silver Equivalent1
(K oz)(oz)(K lbs)(K lbs)(K oz)
Palmarejo7,500 - 7,900115,000 - 120,000——14,400 - 15,100
Rochester4,200 - 4,70045,000 - 50,000——6,900 - 7,700
Kensington—115,000 - 120,000——6,900 - 7,200
Wharf—85,000 - 90,000——5,100 - 5,400
Silvertip1,500 - 2,000—23,000 - 28,00023,000 - 28,0004,030 - 5,080
Total13,200 - 14,600360,000 - 380,00023,000 - 28,00023,000 - 28,00037,330 - 40,480

2018 Cost Outlook
Previous GuidanceCurrent Guidance
(dollars in millions, except per ounce amounts)60:160:1
CAS per AgEqOz1 – Palmarejo
$10.50 - $11.00$9.00 - $9.50
CAS per AgEqOz1 – Rochester
$13.25 - $13.75$13.25 - $13.75
CAS per AuOz1 – Kensington
$900 - $950$900 - $950
CAS per AuEqOz1 – Wharf
$850 - $900$850 - $900
CAS per AgEqOz1 – Silvertip
$15.00 - $15.50$15.00 - $15.50
Capital Expenditures$120 - $140$130 - $150
General and Administrative Expenses$32 - $34$32 - $34
Exploration Expense$20 - $25$25 - $30
AISC per AgEqOz1 from continuing operations
$17.50 - $18.00$17.25 - $17.75
Results of Continuing Operations
The Company produced 3.2 million ounces of silver and 85,38394,052 ounces of gold in the three months ended March 31,June 30, 2018, compared to 2.7 million ounces of silver and 88,21882,819 ounces of gold in the three months ended March 31,June 30, 2017. Silver production increased 17% 19% due to higher grade and mill throughput at Palmarejo, and higherpartially offset by lower placed tons at Rochester. Gold production decreasedincreased 3%14% due to higher grades at Palmarejo and Rochester, higher mill throughput at Palmarejo, and timing of leach pad recoveries at Wharf, partially offset by lower grade at Wharf, lowerKensington.
The Company produced 6.4 million ounces of silver and 179,435 ounces of gold in the six months ended June 30, 2018, compared to 5.4 million ounces of silver and 171,037 ounces of gold in the six months ended June 30, 2017. Silver production increased 18% due to higher grade and mill throughput at KensingtonPalmarejo. Gold production increased 5% due to higher grades at Palmarejo and Rochester and higher mill throughput at Palmarejo, partially offset by lower recoverygrade at Palmarejo.Kensington.
Costs applicable to sales were $9.77 per silver equivalent ounce ($8.55$8.29 per average spot silver equivalent ounce ($9.47 per silver equivalent ounce) and $970$1,040 per gold equivalent ounce in the three months ended March 31,June 30, 2018 compared to $10.61 per silver equivalent ounce ($9.80$11.04 per average spot silver equivalent ounce ($12.11 per silver equivalent ounce) and $788$866 per gold equivalent ounce in the three months ended March 31,June 30, 2017. Costs applicable to sales per silver equivalent ounce decreased 8%22% due to lower unit costs at Palmarejo while costs applicable to sales per gold equivalent ounce increased 23%20% in the three months ended March 31,June 30, 2018 due to higher unit costs at Kensington and Wharf.

Costs applicable to sales were $8.42 per average spot silver equivalent ounce ($9.62 per silver equivalent ounce) and $1,007 per gold equivalent ounce in the six months ended June 30, 2018 compared to $10.31 per average spot silver equivalent ounce ($11.25 per silver equivalent ounce) and $825 per gold equivalent ounce in the six months ended June 30, 2017. Costs applicable to sales per silver equivalent ounce decreased 14% due to lower unit costs at Palmarejo while costs applicable to sales per gold equivalent ounce increased22%in the six months ended June 30, 2018 due to higher unit costs at Kensington and Wharf.
All-in sustaining costs were $17.33$14.73 per average spot silver equivalent ounce ($14.4417.71 per average spot silver equivalent ounce) in the three months ended March 31,June 30, 2018, compared to $14.77$15.66 per average spot silver equivalent ounce ($13.2917.90 per average spot silver equivalent ounce) in the three months ended March 31,June 30, 2017. The 17% increase1% decrease was primarily due to higherlower costs applicable to sales per consolidated silver equivalent ounce, partially offset by higher sustaining capital related to underground development at Palmarejo and Kensington.
All-in sustaining costswere $14.58 per average spot silver equivalent ounce ($17.53 per silver equivalent ounce) in the six months ended June 30, 2018, compared to $14.34 per average spot silver equivalent ounce ($16.15 per silver equivalent ounce) in the six months ended June 30, 2017. The 9% increase was primarily due to higher sustaining capital related to underground development at Palmarejo and Kensington and higher exploration costs, partially offset by lower general and administrative costs.costs applicable to sales per consolidated silver equivalent ounce.

Palmarejo
Three months ended March 31,Three months ended June 30,Six months ended June 30,
2018 20172018 20172018 2017
Tons milled359,893
 360,383
344,073
 335,428
703,966
 695,811
Silver ounces produced2,013,239
 1,530,541
2,065,523
 1,456,821
4,078,762
 2,987,362
Gold ounces produced29,896
 30,792
33,702
 24,292
63,598
 55,084
Silver equivalent ounces produced3,806,999
 3,378,061
4,087,643
 2,914,341
7,894,642
 6,292,402
Costs applicable to sales per silver equivalent oz(1)
$8.01
 $9.71
$7.65
 $11.31
$7.82
 $10.36
Costs applicable to sales per average spot silver equivalent oz(1)
$6.94
 $8.89
$6.65
 $10.20
$6.79
 $9.40
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31,June 30, 2018 compared to Three Months Ended March 31,June 30, 2017
Silver equivalent production increased 40% due to higher mining rates from Independencia and higher silver and gold grade. Metal sales were $70.7 million, or 41% of Coeur’s metal sales, compared with $53.2 million, or 35% of Coeur’s metal sales. Costs applicable to sales per ounce decreased 32% as a result of higher production. Amortization remained comparable at $14.6 million primarily due to higher life of mine reserves, partially offset by higher production driven by higher grades. Capital expenditures decreased to $9.5 million due to less underground development at Guadalupe and Independencia.
Six Months Ended June 30, 2018 compared to Six Months Ended June 30, 2017
Silver equivalent production increased 13%25% due to higher mining rates from Independencia and higher silver and gold grade, partially offset by lower silver and gold recovery. Metal sales were $70.0$140.8 million, or 43%42% of Coeur’s metal sales, compared with $77.7$130.9 million, or 43%40% of Coeur’s metal sales. Costs applicable to sales per ounce decreased 18%25% as a result of higher production. Amortization decreased to $16.3$31.0 million compared to $20.2$34.6 million, primarily due to higher life of mine reserves, partially offset by higher production. Capital expenditures increased to $9.3$18.8 million due to underground development at Guadalupe and Independencia.
Rochester
Three months ended March 31,Three months ended June 30,Six months ended June 30,
2018 20172018 20172018 2017
Tons placed4,351,131
 3,513,708
4,083,028
 4,493,100
8,434,159
 8,006,808
Silver ounces produced1,157,026
 1,127,322
1,125,074
 1,156,341
2,282,100
 2,283,663
Gold ounces produced11,487
 10,356
12,273
 10,745
23,760
 21,101
Silver equivalent ounces produced1,846,246
 1,748,682
1,861,454
 1,801,041
3,707,700
 3,549,723
Costs applicable to sales per silver equivalent oz(1)
$13.59
 $12.56
$13.44
 $13.62
$13.51
 $13.05
Costs applicable to sales per average spot silver equivalent oz(1)
$12.13
 $11.80
$11.94
 $12.63
$12.03
 $12.17
(1)See Non-GAAP Financial Performance Measures.

Three Months Ended June 30, 2018 compared to Three Months Ended June 30, 2017
Silver equivalent production increased 3% due to higher silver and gold grade, partially offset by lower tons placed. Metal sales were $33.7 million, or 20% of Coeur’s metal sales, compared with $32.8 million, or 22% of Coeur’s metal sales. Costs applicable to sales per ounce were comparable. Amortization remained comparable at $4.8 million. Capital expenditures decreased to $0.7 million from $13.8 million due to the completion of the Stage IV leach pad expansion in 2017.
Six Months Ended June 30, 2018 compared to Six Months Ended June 30, 2017
Silver equivalent production increased 4% due to higher tons placed, partially offset by lower silver grade. Metal sales were $67.2 million, or 20% of Coeur’s metal sales, compared with $71.8 million, or 21% of Coeur’s metal sales. Costs applicable to sales per silver equivalent ounce increased 4% due to higher diesel, maintenance, and blasting costs. Amortization decreased to $9.6 million due to lower ounces sold. Capital expenditures decreased to $3.3 million compared to $24.4 million due to the completion of the Stage IV leach pad expansion in 2017.
Wharf
 Three months ended June 30,Six months ended June 30,
 2018 20172018 2017
Tons placed1,075,820
 993,167
2,152,215
 2,285,348
Gold ounces produced22,507
 21,358
40,443
 42,231
Silver ounces produced13,302
 12,587
25,147
 32,652
Gold equivalent ounces produced(1)
22,729
 21,568
40,862
 42,775
Costs applicable to sales per gold equivalent oz(1)
$827
 $734
$847
 $696
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31,June 30, 2018 compared to Three Months Ended March 31,June 30, 2017
SilverGold equivalent production increased 6%5% due to higher tons placed, partially offset by lower silver grade.the timing of leach pad recoveries. Metal sales were $33.5$29.8 million, or 21% of Coeur’s metal sales, compared with $39.0 million, or 21% of Coeur’s metal sales. Costs applicable to sales per silver equivalent ounce increased 8% due to lower silver ounces placed. Amortization decreased to $4.8 million due to lower ounces sold. Capital expenditures decreased to $2.6 million compared to $10.6 million due to the completion of the Stage IV leach pad expansion in 2017.
Kensington
 Three months ended March 31,
 2018 2017
Tons milled158,706
 165,895
Gold ounces produced26,064
 26,197
Costs applicable to sales/oz(1)
$1,031
 $885
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31, 2018 compared to Three Months Ended March 31, 2017
Gold production remained comparable. Metal sales were $36.3 million, or 22%18% of Coeur’s metal sales, compared to $38.0$27.0 million, or 20% of Coeur’s metal sales. Costs applicable to sales per ounce were 16% higher, primarily due to lower mill throughput, higher diesel costs, and higher contract mining costs. Amortization decreased to $6.7 million from $9.2 million due to lower ounces sold. Capital expenditures increased to $11.4 million due to expansion of the site power plant.

Wharf
 Three months ended March 31,
 2018 2017
Tons placed1,076,395
 1,292,181
Gold ounces produced17,936
 20,873
Silver ounces produced11,845
 20,065
Gold equivalent ounces produced(1)
18,133

21,207
Costs applicable to sales per gold equivalent oz(1)
$874
 $662
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31, 2018 compared to Three Months Ended March 31, 2017
Gold equivalent production decreased 14% due to lower grade and lower tons placed. Metal sales were $23.4 million, or 14% of Coeur’s metal sales, compared to $30.3 million, or 16%18% of Coeur’s metal sales. Costs applicable to sales per gold equivalent ounce increased 32%13% due to lower production resulting from the completion of mining at the higher-grade Golden Reward deposit in 2017 and higher diesel costs. Amortization was $3.4 million compared to $2.5 million due to higher ounces sold. Capital expenditures decreased to $1.2 million.
Six Months Ended June 30, 2018 compared to Six Months Ended June 30, 2017
Gold equivalent production decreased 4% due to the timing of leach pad recoveries. Metal sales were $53.3 million, or 16% of Coeur’s metal sales, compared to $57.3 million, or 17% of Coeur’s metal sales. Costs applicable to sales per gold equivalent ounce increased 22% due to lower production resulting from the completion of mining at the higher-grade Golden Reward deposit in 2017, higher pad unloading costs, and higher diesel costs. Amortization was $2.7 millionremained comparable at $6.0 million. Capital expenditures decreased to $1.5 million.
Kensington
 Three months ended June 30,Six months ended June 30,
 2018 20172018 2017
Tons milled168,751
 163,163
327,457
 329,058
Gold ounces produced25,570
 26,424
51,634
 52,621
Costs applicable to sales/oz(1)
$1,215
 $964
$1,124
 $922
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended June 30, 2018 compared to $3.1Three Months Ended June 30, 2017
Gold production decreased 3% due to lower grade. Metal sales were $35.7 million, or 21% of Coeur’s metal sales, compared to $35.6 million, or 24% of Coeur’s metal sales. Costs applicable to sales per ounce were 26% higher, primarily due to lower production, higher diesel costs, and higher contract mining costs. Amortization decreased to $6.4 million from $8.3 million due to higher life of mine reserves and lower ounces sold. Capital expenditures increased to $10.7 million due to expansion of the site power plant.

Six Months Ended June 30, 2018 compared to Six Months Ended June 30, 2017
Gold production remained comparable. Metal sales were $72.0 million, or 22% of Coeur’s metal sales, compared to $73.5 million, or 22% of Coeur’s metal sales. Costs applicable to sales per ounce were 22% higher, primarily due to lower production, higher diesel costs, and higher contract mining costs. Amortization decreased to $0.3 million.$13.2 million from $17.5 million due to higher life of mine reserves and lower ounces sold. Capital expenditures increased to $22.1 million due to expansion of the site power plant.
Endeavor Silver Stream
Three months ended March 31,Three months ended June 30,Six months ended June 30,
2018 20172018 20172018 2017
Tons milled—
 45,340
—
 88,565
—
 133,905
Silver ounces produced—
 39,941
—
 64,672
—
 104,613
Costs applicable to sales/oz(1)
$—
 7.22
$—
 $7.06
$—
 7.12
(1)See Non-GAAP Financial Performance Measures.
In July 2017, the Company sold the Endeavor Silver Stream and our remaining portfolio of royalties for total consideration of $13.0 million to Metalla Royalty & Streaming Ltd. Reported production and financial results include operations through May 2017 in accordance with the terms of the sale agreement.


Liquidity and Capital Resources

Cash and cash equivalents decreased $32.4$68.5 million in the threesix months ended March 31,June 30, 2018 as a result of pre-production capital expenditures to advance Silvertip toward commercial production, lower silver equivalent ounces sold,income and higher costs applicable to sales per silver equivalent ounce,mining tax payments at Palmarejo and an increase in inventories, partially offset by a higher average realized prices.operating margin per consolidated silver equivalent ounce.
Cash Provided by (Used in) Operating Activities from Continuing Operations
Net cash provided byused in operating activities for the three months ended March 31,June 30, 2018 and 2017 was $15.5$1.3 million and $43.9compared to net cash provided by operating activities of $24.1 million respectively, andfor the three months ended June 30, 2017. Net cash provided by operating activities for the six months ended June 30, 2018 was $14.2 million compared to $68.0 million for the six months ended June 30, 2017. Net cash provided by (used in) operating activities was impacted by the following key factors:factors for the applicable periods:
Three months ended March 31,Three months ended June 30, Six months ended June 30,
2018 20172018 2017 2018 2017
Consolidated silver equivalent ounces sold8,390,090
 9,978,120
8,870,100
 7,860,417
 17,260,190
 17,838,597
Average realized price per consolidated silver equivalent ounce$19.46
 $18.60
$19.16
 $19.02
 $19.31
 $18.78
Costs applicable to sales per consolidated silver equivalent ounce (1)
(11.84) (11.47)(12.20) (13.01) (12.03) (12.15)
Operating margin per consolidated silver equivalent ounce$7.62
 $7.13
$6.96
 $6.01
 $7.28
 $6.63
(1)See Non-GAAP Financial Performance Measures.
Three months ended March 31,Three months ended June 30, Six months ended June 30,
In thousands2018 20172018 2017 2018 2017
Cash flow before changes in operating assets and liabilities$33,440
 $43,290
$41,496
 $27,235
 $74,936
 $70,524
Changes in operating assets and liabilities:          
Receivables(1,691) 5,680
(8,888) (2,215) (10,579) 3,465
Prepaid expenses and other(5,635) (4,906)8,126
 4,061
 2,491
 (845)
Inventories(8,708) 15,171
(2,766) (4,809) (11,474) 10,362
Accounts payable and accrued liabilities(1,865) (15,299)(39,262) (167) (41,127) (15,466)
Cash provided by continuing operating activities$15,541
 $43,936
$(1,294) $24,105
 $14,247
 $68,040
Cash provided byused in operating activities decreased $28.4$25.4 million for the three months ended March 31,June 30, 2018 compared to the three months ended March 31,June 30, 2017, primarily due to income and mining tax payments at Palmarejo, partially offset by higher silver equivalent ounces sold and a higher operating margin per consolidated silver equivalent ounce. Revenue for the three months ended June 30, 2018 increased $20.4 million, $18.7 million of which was due to higher silver equivalent ounces sold and $1.7 million due to higher average realized prices. The $42.8 million working capital increase in the three months ended June 30, 2018 was primarily due to the timing of income and mining tax payments at Palmarejo and the timing of accounts receivable and VAT collections, partially offset by a decrease in prepaid assets, compared to the $3.1 million working capital increase in the three months ended June 30, 2017, which was primarily due to an increase of inventories and accounts receivable.
Cash provided by operating activities decreased $53.8 million for the six months ended June 30, 2018 compared to the six months ended June 30, 2017, primarily due to income and mining tax payments at Palmarejo, lower silver equivalent ounces sold and an increase in inventories, partially offset by a higher costs applicable to salesoperating margin per consolidated silver equivalent ounce and unfavorable working capital adjustments, partially offset by higher average realized prices. Metal salesounce. Revenue for the threesix months ended March 31,June 30, 2018 decreased $22.3$1.8 million, with $32.8$13.6 million of which was due to lower silver equivalent ounces sold, partially offset by $10.5$11.7 million due to higher average realized prices. The $17.9$60.7 million working capital increase in the threesix months ended March 31,June 30, 2018 was primarily due to the timing of income and mining tax payments at Palmarejo, an increase in inventories and prepaid assets and the timing on the collection of accounts receivable and VAT refunds,collections, compared to the $0.6$2.5 million working capital decreaseincrease in the threesix months ended March 31,June 30, 2017, which was primarily due to a reduction of inventories carried over from the fourth quarter of 2016 and the collection of accounts receivable, partially offset by the timing of payments.

Cash Provided by (Used in) Investing Activities from Continuing Operations
Net cash used in investing activities in the three months ended March 31,June 30, 2018 was $41.1$30.0 million compared to net cash provided byused in investing activities of $0.4$44.8 million in the three months ended March 31,June 30, 2017, primarily due to the proceeds from the sale of strategic equity investments, partially offset by capital expenditures at Silvertip, and the acquisition of strategic equity investments in 2017. The Company had capital expenditures of $41.2 million in the three months ended June 30, 2018 compared with $37.1 million in the three months ended June 30, 2017. Capital expenditures in the three months ended June 30, 2018 were primarily related to pre-production capital spending at Silvertip and underground development at Silvertip, Palmarejo, and Kensington. Capital expenditures in the three months ended June 30, 2017 were primarily related to underground development at Palmarejo and Kensington and the Stage IV leach pad expansion at Rochester.
Net cash used in investing activities in the six months ended June 30, 2018 was $71.1 million compared to net cash used in investing activities of $44.4 million in the six months ended June 30, 2017, primarily due to capital expenditures at Silvertip and the proceeds from the sale of the Joaquin project in the first quarter of 2017. The Company had capital expenditures of $42.3$83.5 million in the threesix months ended March 31,June 30, 2018 compared with $23.6$60.7 million in the threesix months ended March 31,June 30, 2017. Capital expenditures in the threesix months ended March 31,June 30, 2018 were primarily related to general pre-production capital spending at Silvertip and underground development at Silvertip, Palmarejo, and Kensington. Capital expenditures in the threesix months ended March 31,June 30, 2017 were primarily related to underground development at Palmarejo and Kensington and the Stage IV leach pad expansion at Rochester.
Cash Used inProvided by (Used in) Financing Activities from Continuing Operations
Net cash used in financing activities in the three months ended March 31,June 30, 2018 was $8.1$4.6 million compared to $6.5net cash provided by financing activities of $55.6 million in the three months ended March 31,June 30, 2017. During the three months ended March 31,June 30, 2017, the Company received net proceeds of approximately $245.0 million from the issuance of the 2024 Senior Notes, partially offset by the repurchase of the 2021 Senior Notes for $185.5 million, including premiums.
Net cash used in financing activities in the six months ended June 30, 2018 was $12.7 million compared to net cash provided by financing activities of $49.1 million in the six months ended June 30, 2017. During the six months ended June 30, 2018, the Company drew $15.0 million from the Facility to repay Silvertip’s debt obligation. In addition, the Company had higher tax withholdings on vested stock-based compensation awards duringawards. During the threesix months ended March 31, 2018.June 30, 2017, the Company received net proceeds of approximately $245.0 million from the issuance of the 2024 Senior Notes, partially offset by the repurchase of the 2021 Senior Notes for $185.5 million, including premiums.


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

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

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

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


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

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

The Company recognizes revenue from concentrate sales, net of treatment and refining charges, when it satisfies the performance obligation of transferring control of the concentrate to the customer.

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

The Company’s streaming agreement with a subsidiary of Franco-Nevada commenced in 2016 with a $20.0 million deposit paid by Franco-Nevada in exchange for the right and obligation to purchase 50% of a portion of Palmarejo gold production at the lesser of $800 or market price per ounce. Because there is no minimum obligation associated with this deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation. The streaming agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada.



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

In order to reduce future cash interest payments and/or amounts due at maturity or upon redemption, from time to time we may repurchase certain of our debt securities for cash or in exchange for other securities, which may include secured or unsecured notes or equity, in each case in open market or privately negotiated transactions. We regularly engage in conversations with our bondholders and evaluate any such transactions in light of prevailing market conditions, liquidity requirements, contractual restrictions, and other factors. The amounts involved may be significant and any such transactions may occur at a substantial discount to the debt securities’ face amount.

Non-GAAP Financial Performance Measures
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). Unless otherwise noted, we present the Non-GAAP financial measures of our continuing operations in the tables below. For additional information regarding our discontinued operations, see Note 21 -- to the Condensed Consolidated Financial Statements. These measures should not be considered in isolation or as a substitute for performance measures prepared in accordance with GAAP.

Adjusted Net Income (Loss)
Management uses Adjusted net income (loss) to evaluate the Company’s operating performance, and to plan and forecast its operations. The Company believes the use of Adjusted net income (loss) reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Management’s determination of the components of Adjusted net income (loss) are evaluated periodically and areis based, in part, on a review of non-GAAP financial measures used by mining industry analysts. The tax effect of adjustments are based on statutory tax rates and the Company’s tax attributes, including the impact through the Company’s valuation allowance. The combined effective rate of tax adjustments may not be consistent with the statutory tax rates or the Company’s effective tax rate due to jurisdictional tax attributes and related valuation allowance impacts which may minimize the tax effect of certain adjustments and may not apply to gains and losses equally. Adjusted net income (loss) is reconciled to Net income (loss) in the table below:
Three months ended March 31,Three months ended June 30, Six months ended June 30,
In thousands except per share amounts2018 20172018 2017 2018 2017
Net income (loss)$1,241
 $18,663
$2,930
 $(10,955) $4,171
 $7,708
(Income) loss from discontinued operations, net of tax(550) (364)—
 960
 (550) 596
Fair value adjustments, net(4,987) 1,200
2,462
 (336) (2,192) 864
Impairment of equity and debt securities—
 121
—
 305
 —
 426
Gain on sale of Joaquin project—
 (21,138)—
 —
 —
 (21,138)
(Gain) loss on sale of assets and securities574
 2,066
(586) (513) (345) 1,553
Transaction costs90
 —
Gain on repurchase of Rochester royalty—
 (2,332) —
 (2,332)
(Gain) loss on debt extinguishment—
 9,342
 —
 9,342
Mexico inflation adjustment(1,939) —
 (1,939) —
Interest income on notes receivables(573) —
 (821) —
Foreign exchange loss (gain)4,312
 4,411
(1,233) 2,186
 3,079
 6,597
Tax effect of adjustments(1)
—
 1,807
—
 —
 —
 1,807
Adjusted net income (loss)$680
 $6,766
$1,061

$(1,343)
$1,403
 $5,423
          
Adjusted net income (loss) per share - Basic$0.00
 $0.04
$0.01
 $(0.01) $0.01
 $0.03
Adjusted net income (loss) per share - Diluted$0.00
 $0.04
$0.01
 $(0.01) $0.01
 $0.03
(1)For the threesix months ended March 31,June 30, 2017, tax effect of adjustments of $1.8 million (14%(-16%) is primarily related to a taxable gain on the sale of assets and the tax valuation allowance impact from an asset write-down, partially offset by tax benefit from fair value adjustments.Joaquin project.





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 2024 Senior Notes Indenture and the Facility to determine our ability to make certain payments and incur additional indebtedness. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, Net income (Loss) or Cash Flow from Operations as determined under GAAP. Other companies may calculate Adjusted EBITDA differently and those calculations may not be comparable to our presentation. Adjusted EBITDA is reconciled to Net income (loss) in the table below:

Three months ended March 31,Three months ended June 30, Six months ended June 30,
In thousands except per share amounts2018 20172018 2017 2018 2017
Net income (loss)$1,241
 $18,663
$2,930
 $(10,955) $4,171
 $7,708
(Income) loss from discontinued operations, net of tax(550) (364)—
 960
 (550) 596
Interest expense, net of capitalized interest5,965
 3,579
6,018
 3,744
 11,983
 7,323
Income tax provision (benefit)11,949
 10,878
3,717
 (1,127) 15,666
 9,751
Amortization30,777
 38,693
29,459
 30,734
 60,236
 69,427
EBITDA49,382

71,449
42,124

23,356

91,506

94,805
Fair value adjustments, net(4,987) 1,200
2,462
 (336) (2,192) 864
Impairment of equity and debt securities—
 121
—
 305
 —
 426
Foreign exchange (gain) loss670
 (1,206)3,309
 (786) 3,979
 (1,992)
Gain on sale of Joaquin project—
 (21,138)—
 —
 —
 (21,138)
(Gain) loss on sale of assets and securities574
 2,066
(586) (513) (345) 1,553
Transaction costs90
 —
Gain on repurchase of Rochester royalty—
 (2,332) —
 (2,332)
Loss on debt extinguishment—
 9,342
 —
 9,342
Mexico inflation adjustment(1,939) —
 (1,939) —
Interest income on notes receivables(573) —
 (821) —
Asset retirement obligation accretion2,669
 2,116
2,817
 2,169
 5,486
 4,285
Inventory adjustments and write-downs1,126
 (94)817
 715
 1,483
 621
Adjusted EBITDA$49,524

$54,514
$48,431

$31,920

$97,157

$86,434
Costs Applicable to Sales and All-in Sustaining Costs
Management uses Costs applicable to sales (“CAS”) and All-in sustaining costs (“AISC”) to evaluate the Company’s current operating performance and life of mine performance from discovery through reclamation. We believe these measures assist analysts, investors and other stakeholders in understanding the costs associated with producing silver and gold, assessing our operating performance and ability to generate free cash flow from operations and sustaining production. These measures may not be indicative of operating profit or cash flow from operations as determined under GAAP. Management believes converting the benefit from selling gold into silver equivalent ounces best allows management, analysts, investors and other stakeholders to evaluate the operating performance of the Company. Other companies may calculate CAS and AISC differently as a result of reflecting the benefit from selling non-silver metals as a by-product credit rather than converting to silver equivalent ounces, differences in the determination of sustaining capital expenditures, and differences in underlying accounting principles and accounting frameworks such as in International Financial Reporting Standards.













Three Months Ended March 31,June 30, 2018
 Silver Gold Total Silver Gold Total
In thousands except per ounce amounts Palmarejo Rochester Total Kensington Wharf Total  Palmarejo Rochester Total Kensington Wharf Total 
Costs applicable to sales, including amortization (U.S. GAAP) $47,421

$29,136
 $76,557
 $35,347
 $17,966
 $53,313
 $129,870
 $44,943
 $29,244
 $74,187
 $40,668
 $22,611
 $63,279
 $137,466
Amortization 16,325
 4,831
 21,156
 6,717
 2,657
 9,374
 30,530
 14,633
 4,793
 19,426
 6,441
 3,353
 9,794
 29,220
Costs applicable to sales $31,096
 $24,305
 $55,401
 $28,630
 $15,309
 $43,939
 $99,340
 $30,310
 $24,451
 $54,761
 $34,227
 $19,258
 $53,485
 $108,246
Silver equivalent ounces sold 3,883,983
 1,789,007
 5,672,990
       8,390,090
 3,964,208
 1,819,072
 5,783,280
       8,870,100
Gold equivalent ounces sold       27,763
 17,522
 45,285
         28,165
 23,282
 51,447
  
Costs applicable to sales per ounce $8.01

$13.59
 $9.77
 $1,031
 $874
 $970
 $11.84
 $7.65
 $13.44
 $9.47
 $1,215
 $827
 $1,040
 $12.20
                            
Costs applicable to sales per average spot ounce $6.94
 $12.13
 $8.55
 
 
 
 $9.87
 $6.65
 $11.94
 $8.29
       $10.15
                            
Costs applicable to sales             $99,340
             $108,246
Treatment and refining costs             1,195
             1,046
Sustaining capital(1)
             23,389
             28,571
General and administrative             8,804
             7,650
Exploration             6,683
             6,429
Reclamation             4,532
             4,667
Project/pre-development costs             1,421
             517
All-in sustaining costs             $145,364
             $157,126
Silver equivalent ounces sold             5,672,990
             5,783,280
Kensington and Wharf silver equivalent ounces soldKensington and Wharf silver equivalent ounces sold         2,717,100
Kensington and Wharf silver equivalent ounces sold         3,086,820
Consolidated silver equivalent ounces soldConsolidated silver equivalent ounces sold           8,390,090
Consolidated silver equivalent ounces sold           8,870,100
All-in sustaining costs per silver equivalent ounceAll-in sustaining costs per silver equivalent ounce         $17.33
All-in sustaining costs per silver equivalent ounce         $17.71
                            
Consolidated silver equivalent ounces sold (average spot)Consolidated silver equivalent ounces sold (average spot)         10,066,759
Consolidated silver equivalent ounces sold (average spot)         10,667,255
All-in sustaining costs per average spot silver equivalent ounceAll-in sustaining costs per average spot silver equivalent ounce         $14.44
All-in sustaining costs per average spot silver equivalent ounce         $14.73
(1)Excludes development capital for Jualin and Silvertip.

Three Months Ended March 31,June 30, 2017
 Silver Gold   Silver Gold  
In thousands except per ounce amounts Palmarejo Rochester Endeavor Total Kensington Wharf Total Total Palmarejo Rochester Endeavor Total Kensington Wharf Total Total
Costs applicable to sales, including amortization (U.S. GAAP) $63,151
 $32,255
 $400
 $95,806
 $37,621
 $19,431
 $57,052
 $152,858
 $48,325
 $29,099
 $586
 $78,010
 $36,335
 $18,317
 $54,652
 $132,662
Amortization 20,150
 5,816
 113
 26,079
 9,178
 3,111
 12,289
 38,368
 14,431
 4,938
 168
 19,537
 8,347
 2,549
 10,896
 30,433
Costs applicable to sales $43,001
 $26,439
 $287
 $69,727
 $28,443
 $16,320
 $44,763
 $114,490
 $33,894
 $24,161
 $418
 $58,473
 $27,988
 $15,768
 $43,756
 $102,229
Silver equivalent ounces sold 4,427,346
 2,104,209
 39,765
 6,571,320
       9,978,120
 2,995,623
 1,774,000
 59,234
 4,828,857
       7,860,417
Gold equivalent ounces sold         32,144
 24,636
 56,780
           29,031
 21,495
 50,526
  
Costs applicable to sales per ounce $9.71

$12.56

$7.22

$10.61
 $885

$662

$788
 $11.47
 $11.31
 $13.62
 $7.06
 $12.11
 $964
 $734
 $866
 $13.01
                                
Costs applicable to sales per average spot ounce $8.89
 $11.80
 
 $9.80
       $10.33
 $10.20
 $12.63
   $11.04
       $11.38
                                
Costs applicable to sales               $114,490
               $102,229
Treatment and refining costs               1,616
               1,288
Sustaining capital(1)
               11,191
               17,173
General and administrative               10,125
               7,025
Exploration               5,252
               7,813
Reclamation               3,338
               3,581
Project/pre-development costs               1,419
               1,677
All-in sustaining costs               $147,431
               $140,786
Silver equivalent ounces sold               6,571,320
               4,828,857
Kensington and Wharf silver equivalent ounces soldKensington and Wharf silver equivalent ounces sold           3,406,800
Kensington and Wharf silver equivalent ounces sold           3,031,560
Consolidated silver equivalent ounces soldConsolidated silver equivalent ounces sold             9,978,120
Consolidated silver equivalent ounces sold             7,860,417
All-in sustaining costs per silver equivalent ounceAll-in sustaining costs per silver equivalent ounce           $14.77
All-in sustaining costs per silver equivalent ounce           $17.90
                                
Consolidated silver equivalent ounces sold (average spot)Consolidated silver equivalent ounces sold (average spot)           11,093,378
Consolidated silver equivalent ounces sold (average spot)           8,990,166
All-in sustaining costs per average spot silver equivalent ounceAll-in sustaining costs per average spot silver equivalent ounce           $13.29
All-in sustaining costs per average spot silver equivalent ounce           $15.66
(1)Excludes development capital for Jualin, Independencia, Guadalupe South Portal and Rochester expansion permitting.


The table below includes the Company’s mineralized material at December 31, 2017.Six Months Ended June 30, 2018
 
Mineralized Material at December 31, 2017(1)(2)(3)(4)
 Tons (000s) Silver Grade (oz./ton) Gold Grade (oz./ton) Lead Grade (percent) Zinc Grade (percent)
Palmarejo Mine, Mexico(5)
8,074
 3.35
 0.046
 —
 —
San Bartolomé Mine, Bolivia(6)
4,087
 3.42
 —
 —
 —
Kensington Mine, USA(7)
2,878
 —
 0.271
 —
 —
Wharf Mine, USA(8)
7,710
 —
 0.023
 —
 —
Rochester Mine, USA(9)
179,885
 0.36
 0.002
 —
 —
Silvertip Mine, Canada(10)
2,589
 10.26
 —
 6.74
 9.41
La Preciosa Project, Mexico(11)
28,677
 3.67
 0.006
 —
 —
Total Mineralized Material233,900
        
  Silver Gold Total
In thousands except per ounce amounts Palmarejo Rochester Total Kensington Wharf Total 
Costs applicable to sales, including amortization (U.S. GAAP) $92,364

$58,380
 $150,744
 $76,015
 $40,577
 $116,592
 $267,336
Amortization 30,958
 9,624
 40,582
 13,158
 6,010
 19,168
 59,750
Costs applicable to sales $61,406
 $48,756
 $110,162
 $62,857
 $34,567
 $97,424
 $207,586
Silver equivalent ounces sold 7,848,191
 3,608,079
 11,456,270
       17,260,190
Gold equivalent ounces sold       55,928
 40,804
 96,732
  
Costs applicable to sales per ounce $7.82

$13.51
 $9.62
 $1,124
 $847
 $1,007
 $12.03
               
Costs applicable to sales per average spot ounce $6.79
 $12.03
 $8.42
 
 
 
 $10.01
               
Costs applicable to sales             $207,586
Treatment and refining costs             2,241
Sustaining capital(1)
             51,960
General and administrative             16,454
Exploration             13,112
Reclamation             9,199
Project/pre-development costs             1,938
All-in sustaining costs             $302,490
Silver equivalent ounces sold             11,456,270
Kensington and Wharf silver equivalent ounces sold         5,803,920
Consolidated silver equivalent ounces sold           17,260,190
All-in sustaining costs per silver equivalent ounce         $17.53
               
Consolidated silver equivalent ounces sold (average spot)         20,739,781
All-in sustaining costs per average spot silver equivalent ounce         $14.58
(1)Assumed metal pricesExcludes development capital for estimated 2017 mineralized material were $20.00 per ounce of silver, $1,400 per ounce of gold, $1.15 per pound zinc,Jualin and $1.00 per pound lead. 2017 mineralized material effective December 31, 2017.Silvertip.

Six Months Ended June 30, 2017
  Silver Gold  
In thousands except per ounce amounts Palmarejo Rochester Endeavor Total Kensington Wharf Total Total
Costs applicable to sales, including amortization (U.S. GAAP) $111,476
 $61,354
 $986
 $173,816
 $73,956
 $37,748
 $111,704
 $285,520
Amortization 34,581
 10,754
 281
 45,616
 17,525
 5,660
 23,185
 68,801
Costs applicable to sales $76,895
 $50,600
 $705
 $128,200
 $56,431
 $32,088
 $88,519
 $216,719
Silver equivalent ounces sold 7,422,969
 3,878,209
 98,999
 11,400,177
       17,838,597
Gold equivalent ounces sold         61,175
 46,132
 107,307
  
Costs applicable to sales per ounce $10.36

$13.05

$7.12

$11.25
 $922

$696

$825
 $12.15
                 
Costs applicable to sales per average spot ounce $9.40
 $12.17
 
 $10.31
       $10.78
                 
Costs applicable to sales               $216,719
Treatment and refining costs               2,904
Sustaining capital(1)
               28,365
General and administrative               17,150
Exploration               13,065
Reclamation               6,920
Project/pre-development costs               3,096
All-in sustaining costs               $288,219
Silver equivalent ounces sold               11,400,177
Kensington and Wharf silver equivalent ounces sold           6,438,420
Consolidated silver equivalent ounces sold             17,838,597
All-in sustaining costs per silver equivalent ounce           $16.15
                 
Consolidated silver equivalent ounces sold (average spot)           20,098,954
All-in sustaining costs per average spot silver equivalent ounce           $14.34
(2)(1)Estimated with mining cost parametersExcludes development capital for Jualin, Guadalupe South Portal and initial metallurgical test results.Rochester expansion permitting.
(3)Mineralized material estimates were completed by company technical staff, except for La Preciosa which was completed by an external consultant supervised by technical company staff.
(4)Estimated using 3-dimensional geologic modeling and geostatistical evaluation of the exploration drill data. Mineralized material is reported exclusive of reserves. “Mineralized material” as used in this Quarterly Report on Form 10-Q, although permissible under Guide 7, does not indicate “reserves” by SEC standards. There is no certainty that any part of the reported mineralized material will ever be confirmed or converted into Guide 7 compliant “reserves”.
(5)Cutoff grades for mineralized material is 2.49 g/tonne AuEq.
(6)Cutoff grades for mineralized material is 95 g/tonne.
(7)The cutoff grade for mineralized material is 0.13 oz/ton Au.
(8)The cutoff grade for mineralized material is 0.009 oz/ton Au.
(9)The cutoff grade for mineralized material is 0.46 oz/ton AgEq.
(10)The cutoff grade for mineralized material is 200 g/tonne AgEq.
(11)The cutoff grade for mineralized material is 121.71 g/ton AgEq for underground, and 71.86 g/t for surface mining.


Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce for Revised 2018 Guidance
 SilverGold 
In thousands except per ounce amountsPalmarejoRochesterSilvertipTotal SilverKensingtonWharfTotal GoldTotal Combined
Costs applicable to sales, including amortization (U.S. GAAP)$200,000
$116,300
$55,600
$371,900
$146,100
$89,700
$235,800
$607,700
Amortization65,000
18,900
14,000
97,900
40,400
12,100
52,500
150,400
Costs applicable to sales$135,000
$97,400
$41,600
$274,000
$105,700
$77,600
$183,300
$457,300
Silver equivalent ounces sold14,800,000
7,300,000
2,700,000
24,800,000
   37,100,000
Gold equivalent ounces sold    117,500
87,500
205,000
 
Costs applicable to sales per ounce$9.00 - $9.50$13.25 - $13.75$15.00 - $15.50 $900 - $950$850 - $900  
         
Costs applicable to sales       $457,300
Treatment and refining costs       9,000
Sustaining capital, including capital lease payments     105,000
General and administrative       33,000
Exploration       26,000
Reclamation       15,700
Project/pre-development costs       2,900
All-in sustaining costs       $648,900
Silver equivalent ounces sold       24,800,000
Kensington and Wharf silver equivalent ounces sold    12,300,000
Consolidated silver equivalent ounces sold      37,100,000
All-in sustaining costs per silver equivalent ounce    $17.25 - $17.75

Reconciliation of All-in Sustaining Costs per Silver Equivalent Ounce for Previous 2018 Guidance
 SilverGold 
In thousands except per ounce amountsPalmarejoRochesterSilvertipTotal SilverKensingtonWharfTotal GoldTotal Combined
Costs applicable to sales, including amortization (U.S. GAAP)$208,000
$116,300
$88,000
$412,300
$146,100
$89,700
$235,800
$648,100
Amortization63,300
18,900
20,000
102,200
40,400
12,100
52,500
154,700
Costs applicable to sales$144,700
$97,400
$68,000
$310,100
$105,700
$77,600
$183,300
$493,400
Silver equivalent ounces sold13,700,000
7,300,000
4,500,000
25,500,000
   37,800,000
Gold equivalent ounces sold    117,500
87,500
205,000
 
Costs applicable to sales per ounce$10.50 - $11.00$13.25 - $13.75$15.00 - $15.50 $900 - $950$850 - $900  
         
Costs applicable to sales       $493,400
Treatment and refining costs       12,000
Sustaining capital, including capital lease payments     100,000
General and administrative       33,000
Exploration       22,000
Reclamation       15,700
Project/pre-development costs       2,900
All-in sustaining costs       $679,000
Silver equivalent ounces sold       25,500,000
Kensington and Wharf silver equivalent ounces sold    12,300,000
Consolidated silver equivalent ounces sold      37,800,000
All-in sustaining costs per silver equivalent ounce    $17.50 - $18.00


Cautionary Statement Concerning Forward-Looking Statements
This report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold, silver, zinc and lead mining business, including statements regarding, mineralized material estimates, exploration efforts, drilling, development at Kensington, Palmarejo and Silvertip, estimated production, costs, capital expenditures, contingent payments for the Silvertip acquisition, timing of commercial production at Silvertip, expenses, metals prices, sufficiency of assets, ability to discharge liabilities, liquidity management, financing needs, environmental compliance expenditures, risk management strategies, operational excellence, cost reduction initiatives, capital discipline, and initiatives to maximize net cash flow, enhance revenues, reduce operating and non-operating costs, and manage working capital efficiently. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “plan,” “projected,” “contemplates,” “anticipates” or similar words. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in the “Risk Factors” section of the 2017 10-K, the risk factors set forth below under Item 1ACompany’s Form 10-Q for the quarterly period ended March 31, 2018 and in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, , (ii)  the risk that the ramp up ofcommercial production at Silvertip will be delayed, (iii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iv) changes in the market prices of gold, silver, zinc and lead and a sustained lower price environment, (v) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays, ground conditions and grade variability, (vi) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vii) the uncertainties inherent in the estimation of gold, silver, zinc and lead reserves and mineralized material, (viii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (ix)  the loss of access to any third-party smelter to whom the Company markets silver and gold, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, and (xii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

Item 3.        Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to various market risks as a part of its operations and engages in risk management strategies to mitigate these risks. The Company continually evaluates the potential benefits of engaging in these strategies based on current market conditions. The Company does not actively engage in the practice of trading derivative instruments for profit. Additional information about the Company’s derivative financial instruments may be found in Note 11 -- Derivative Financial Instruments in the notes to the condensed consolidated financial statements. This discussion of the Company’s market risk assessments contains “forward looking statements”. For additional information regarding forward-looking statements and risks and uncertainties that could impact the Company, please refer to Item 2 of this Report - Cautionary Statement Concerning Forward-Looking Statements. Actual results and actions could differ materially from those discussed below.
Gold, Silver, Zinc and Lead Prices
Gold, silver, zinc, and lead prices may fluctuate widely due to numerous factors, such as U.S. dollar strength or weakness, demand, investor sentiment, inflation or deflation, and global mine production. The Company’s profitability and cash flow may be significantly impacted by changes in the market price of gold, silver, zinc, and lead.
Gold, Silver, Zinc and Lead Hedging
To mitigate the risks associated with gold, silver, zinc and lead price fluctuations, the Company may enter into option contracts to hedge future production. The Company had outstanding Asian put and call option contracts in net-zero-cost collar contracts on zinc at March 31,June 30, 2018. The weighted average strike prices on the put and call contracts are $3,000 and $4,050 per metric ton, respectively. The contracts are generally net cash settled and, if the price of zinc at the time of the expiration is between the put and call prices, would expire at no cost to the Company. At March 31,June 30, 2018, the fair market value of the put and call zero cost collar contracts was a net asset of $0.1$0.4 million. During the threesix months ended March 31,June 30, 2018, the Company had recorded unrealized gains of $0.1$0.4 million related to outstanding options which were included in Fair value adjustments, net.
Provisional Silver and Gold Sales
The Company enters into sales contracts with third-party smelters and refiners which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract. Depending on the difference between the price at the time of sale and the final settlement price, embedded derivatives are recorded as either a derivative asset or liability. The embedded

derivatives do not qualify for hedge accounting and, as a result, are marked to the market gold and silver price at the end of each

period from the provisional sale date to the date of final settlement. The mark-to-market gains and losses are recorded in earnings. Changes in silver and gold prices resulted in provisional pricing mark-to-market gainslosses of $0.3 million and $1.2 million$20 thousand in the three and six months ended March 31,June 30, 2018, and 2017, respectively.
At March 31,June 30, 2018, the Company had outstanding provisionally priced sales of 49,853 ounces of silver and 45,05135,787 ounces of gold at pricesan average price of $16.66 and $1,317, respectively.$1,299. A 10% change in realized silver price would result in a de minimis change in revenue and a 10% change in realized gold price would cause revenue to vary by $5.9$4.6 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 exchange forward and/or option contracts when the Company believes such contracts would be beneficial. The Company had no outstanding foreign exchange contracts at March 31,June 30, 2018.
Interest Rates
Interest Rate Hedging
We may use financial instruments to manage exposures to changes in interest rates on loans, which exposes us to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, it does not pose credit risk. We seek to minimize the credit risk in derivative instruments by entering into transactions with what we believe are high-quality counterparties. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. The Company had an outstanding interest rate swap whereby the Company receives a variable rate in exchange for a floating rate at June 30, 2018.


Item 4.Controls and Procedures
(a)Disclosure Controls and Procedures
As of the end of the period covered by this quarterly report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and management necessarily applied its judgment in assessing the costs and benefits of such controls and procedures, which by their nature, can provide only reasonable assurance regarding management’s control objectives. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events. Based upon the foregoing, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective and operating to provide reasonable assurance that information required to be disclosed by it in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and to provide reasonable assurance that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
(b)Management’s Report on Internal Control Over Financial Reporting
Based on an evaluation by the Company’s Chief Executive Officer and Chief Financial Officer, such officers concluded
that there was no change in the Company’s internal control over financial reporting during the three months ended three months ended March 31,June 30, 2018 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II
Item 1.         Legal Proceedings
For a discussion of legal proceedings, seeSee Note 20 -- Commitments and Contingencies in the notes to the Consolidated Financial Statements included herein.

Item 1A.     Risk Factors

Item 1A -- Risk Factors of the 2017 10-K setsand the Company’s Quarterly Report on Form 10-Q filed on April 25, 2018 set forth information relating to important risks and uncertainties that could
materially adversely affect the Company’s business, financial condition or operating results. Those risk factors have been supplemented and updated in this Form 10-Q. Except as supplemented and updated below, the risk factors set forth in the 2017 10-K remain current. Additional risks and uncertainties that the Company does not presently know or that it currently deems immaterial also may impair our business operations.
The Company’s business depends on good relations with, and the retention and hiring of, employees.

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

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

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

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

Item 4.         Mine Safety Disclosures

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

Item 5.         Other Information

None.In accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policy, the transactions listed below were entered into by certain executive officers of the Company for diversification purposes. After giving effect to the transactions, each such executive officer would remain in compliance with the Company's executive stock ownership guidelines.

Peter C. Mitchell, the Company’s Senior Vice President and Chief Financial Officer, entered into a selling plan effective May 1, 2018. Under the selling plan, between July 30, 2018 and March 13, 2019, Mr. Mitchell will sell a total of 70,000 shares of the Company’s common stock so long as the market price of the common stock is higher than a minimum threshold price specified in the plan.
Frank L. Hanagarne, Jr., the Company’s Senior Vice President and Chief Operating Officer, entered into a selling plan effective June 5, 2018. Under the selling plan, between July 27, 2018 and January 31, 2019, Mr. Hanagarne will sell a total of 11,410 shares of the Company’s common stock so long as the market price of the common stock is higher than a minimum threshold price specified in the plan.

Rule 10b5-1 permits an insider to implement a written prearranged trading plan entered into at a time when the insider is not aware of any material nonpublic information about the Company and allows the insider to trade on a one-time or regularly scheduled basis regardless of any material nonpublic information about the Company thereafter received by the insider.


On July 23, 2018, Peter C. Mitchell, the Company’s Senior Vice President and Chief Financial Officer, notified the Company of his intent to retire in early 2019, subject to a successor having been identified and prepared to assume the role.


Item 6.        Exhibits
10.1
Amendment to Share Purchase Agreement, dated February 16, 2018, by and among Coeur Mining, Inc., a Delaware corporation, Coeur South America Corp., a Delaware corporation, Coeur Explorations, Inc., an Idaho corporation, Empresa Minera Manquiri S.A., a Bolivian sociedad anónima, and Ag-Mining Investments, AB (formerly NewCo 4714 Sweden AB under change of name to Argentum Investment AB). (Incorporated 2018 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 10.199.1 to the Registrant’s Current ReportRegistration Statement on Form 8-KS-8 filed on February 16,May 8, 2018 (File No. 001-08641)333-224751)).*
10.2
Form of Performance Share Agreement under the Coeur Mining, Inc. 2018 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 99.2 to the Registrant’s Registration Statement on Form S-8 filed on May 8, 2018 (File No. 333-224751)).*
10.3
Form of Incentive Stock Option Award Agreement under the Coeur Mining, Inc. 2018 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 99.3 to the Registrant’s Registration Statement on Form S-8 filed on May 8, 2018 (File No. 333-224751)).*
10.4
Form of Nonqualified Stock Option Award Agreement under the Coeur Mining, Inc. 2018 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 99.4 to the Registrant’s Registration Statement on Form S-8 filed on May 8, 2018 (File No. 333-224751)).*
10.5
Form of Cash-Settled Stock Appreciation Rights Award Agreement under the Coeur Mining, Inc. 2018 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 99.5 to the Registrant’s Registration Statement on Form S-8 filed on May 8, 2018 (File No. 333-224751)).*
10.6
Form of Performance Unit Agreement under the Coeur Mining, Inc. 2018 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 99.6 to the Registrant’s Registration Statement on Form S-8 filed on May 8, 2018 (File No. 333-224751)).*
10.7
Form of Restricted Stock Award Agreement under the Coeur Mining, Inc. 2018 Long-Term Incentive Plan (incorporated herein by reference to Exhibit 99.7 to the Registrant’s Registration Statement on Form S-8 filed on May 8, 2018 (File No. 333-224751)).*
31.1
Certification of the CEO (Filed herewith).
31.2
Certification of the CFO (Filed herewith).
32.1
CEO Section 1350 Certification (Filed herewith).
32.2
CFO Section 1350 Certification (Filed herewith).
95.1
Mine Safety Disclosure (Filed herewith).
101.INSXBRL Instance Document**
101.SCHXBRL Taxonomy Extension Schema**
101.CALXBRL Taxonomy Extension Calculation Linkbase**
101.DEFXBRL Taxonomy Extension Definition Linkbase**
101.LABXBRL Taxonomy Extension Label Linkbase**
101.PREXBRL Taxonomy Extension Presentation Linkbase**
*    Management contract or compensatory plan or arrangement.
**    The following financial information from Coeur Mining, Inc.'s Annual Report on Form 10-Q for the three and six months ended March 31,June 30, 2018, formatted in XBRL (Extensible Business Reporting Language): Consolidated Statements of Comprehensive Income (Loss), Consolidated Statements of Cash Flows, Consolidated Balance Sheets, and Consolidated Statement of Changes in Stockholders' Equity


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
  COEUR MINING, INC. 
  (Registrant) 
    
DatedAprilJuly 25, 2018/s/ Mitchell J. Krebs 
  MITCHELL J. KREBS 
  President and Chief Executive Officer (Principal Executive Officer)
    
DatedAprilJuly 25, 2018/s/ Peter C. Mitchell 
  PETER C. MITCHELL 
  Senior Vice President and Chief Financial Officer (Principal Financial Officer)
    
DatedAprilJuly 25, 2018/s/ Ken Watkinson 
  KEN WATKINSON 
  Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)


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