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

☑Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31,June 30, 2020
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

 cde-20200630_g1.jpg
COEUR MINING, INC.
(Exact name of registrant as specified in its charter)

Delaware82-0109423
 (State or other jurisdiction of
incorporation or organization)		(I.R.S. Employer
Identification No.)
Delaware82-0109423
                                              (State or other jurisdiction of
                                               incorporation or organization)
(I.R.S. Employer
Identification No.)
104 S. Michigan Ave.
Suite 900Chicago,Illinois60603
                                                  (Address(Address of principal executive offices)(Zip Code)
(312) (312) 489-5800
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock (par value $.01 per share)CDENew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:    Yes  ☑    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)    Yes  ☑    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☑Accelerated filer☐
Large acceleratedNon-accelerated filer☑☐Accelerated filerSmaller reporting company☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☑
The Company has 300,000,000 shares of common stock, par value of $0.01, authorized of which 243,537,380243,738,147 shares were issued and outstanding as of April 20,July 27, 2020.



COEUR MINING, INC.
INDEX
Page
Part I.Financial Information
Item 1. Financial StatementsPage
Part I.
Financial Information
Item 1. Financial Statements
Condensed Consolidated Balance Sheets (Unaudited)
4
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
5
Condensed Consolidated Statements of Cash Flows (Unaudited)
6
Condensed Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)
7
Notes to Condensed Consolidated Financial Statements (Unaudited)
8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
3237
Consolidated Financial Results
3539
Results of Operations
3743
Liquidity and Capital Resources
3946
Non-GAAP Financial Performance Measures
4048
Item 3. Quantitative and Qualitative Disclosures about Market Risk
4554
Item 4. Controls and Procedures
4756
Part II.Other Information
Other Information57
48
Item 1. Legal Proceedings
Item 1. 57Legal Proceedings
48
Item 1A. Risk Factors
Item 1A. 57Risk Factors
48
Item 4. Mine Safety Disclosures
4959
Item 5. Other Information
4960
Item 6. Exhibits
Item 6. 61Exhibits
50
Signatures
5061


3

PART I
Item 1.  Financial Statements and Supplementary Data

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
June 30, 2020December 31, 2019
ASSETSNotesIn thousands, except share data
CURRENT ASSETS
Cash and cash equivalents$70,924  $55,645  
Receivables421,986  18,666  
Inventory552,752  55,886  
Ore on leach pads575,111  66,192  
Prepaid expenses and other18,730  14,047  
239,503  210,436  
NON-CURRENT ASSETS
Property, plant and equipment, net234,133  248,789  
Mining properties, net704,580  711,955  
Ore on leach pads578,605  71,539  
Restricted assets8,636  8,752  
Equity and debt securities615,086  35,646  
Receivables422,978  28,709  
Other57,559  62,810  
TOTAL ASSETS$1,361,080  $1,378,636  
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable$58,241  $69,176  
Accrued liabilities and other1968,457  95,616  
Debt827,176  22,746  
Reclamation93,094  3,114  
156,968  190,652  
NON-CURRENT LIABILITIES
Debt8321,443  272,751  
Reclamation9137,715  133,417  
Deferred tax liabilities35,266  41,976  
Other long-term liabilities55,831  72,836  
550,255  520,980  
COMMITMENTS AND CONTINGENCIES17
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 243,731,885 issued and outstanding at June 30, 2020 and 241,529,021 at December 31, 20192,437  2,415  
Additional paid-in capital3,605,982  3,598,472  
Accumulated other comprehensive income (loss)(7,706) (136) 
Accumulated deficit(2,946,856) (2,933,747) 
653,857  667,004  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$1,361,080  $1,378,636  


March 31, 2020
December 31, 2019
ASSETSNotesIn thousands, except share data
CURRENT ASSETS



Cash and cash equivalents
$52,895

$55,645
Receivables419,722

18,666
Inventory551,857

55,886
Ore on leach pads583,035

66,192
Prepaid expenses and other
14,150

14,047


221,659

210,436
NON-CURRENT ASSETS



Property, plant and equipment, net
242,018

248,789
Mining properties, net
702,960

711,955
Ore on leach pads566,703

71,539
Restricted assets
8,123

8,752
Equity and debt securities626,826

35,646
Receivables423,149

28,709
Other
57,659

62,810
TOTAL ASSETS
$1,349,097

$1,378,636
LIABILITIES AND STOCKHOLDERS’ EQUITY



CURRENT LIABILITIES



Accounts payable
$61,519

$69,176
Accrued liabilities and other1949,935

95,616
Debt823,588

22,746
Reclamation93,094

3,114


138,136

190,652
NON-CURRENT LIABILITIES



Debt8319,521

272,751
Reclamation9135,436

133,417
Deferred tax liabilities
36,472

41,976
Other long-term liabilities
58,888

72,836


550,317

520,980
COMMITMENTS AND CONTINGENCIES17


STOCKHOLDERS’ EQUITY



Common stock, par value $0.01 per share; authorized 300,000,000 shares, 243,586,226 issued and outstanding at March 31, 2020 and 241,529,021 at December 31, 2019
2,436

2,415
Additional paid-in capital
3,603,785

3,598,472
Accumulated other comprehensive income (loss)
70

(136)
Accumulated deficit
(2,945,647)
(2,933,747)


660,644

667,004
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$1,349,097

$1,378,636

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

4

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,
 2020 2019 2020201920202019
NotesIn thousands, except share data NotesIn thousands, except share data
Revenue3$173,167
 $154,870
Revenue3$154,249  $162,123  $327,416  $316,993  
COSTS AND EXPENSES    COSTS AND EXPENSES
Costs applicable to sales(1)
3118,917
 131,650
Costs applicable to sales(1)
390,015  131,948  208,932  263,598  
Amortization 36,162
 41,876
Amortization27,876  43,204  64,038  85,080  
General and administrative 8,920
 9,474
General and administrative8,616  7,750  17,536  17,224  
Exploration 6,386
 3,714
Exploration11,855  5,719  18,241  9,433  
Pre-development, reclamation, and other 6,555
 4,434
Pre-development, reclamation, and other18,675  4,334  25,230  8,768  
Total costs and expenses 176,940
 191,148
Total costs and expenses157,037  192,955  333,977  384,103  
OTHER INCOME (EXPENSE), NET    OTHER INCOME (EXPENSE), NET
Fair value adjustments, net12(8,819) 9,120
Fair value adjustments, net1210,067  (5,296) 1,248  3,824  
Interest expense, net of capitalized interest8(5,128) (6,454)Interest expense, net of capitalized interest8(5,765) (6,825) (10,893) (13,279) 
Other, net141,881
 60
Other, net14121  643  2,002  703  
Total other income (expense), net (12,066) 2,726
Total other income (expense), net4,423  (11,478) (7,643) (8,752) 
Income (loss) before income and mining taxes (15,839) (33,552)Income (loss) before income and mining taxes1,635  (42,310) (14,204) (75,862) 
Income and mining tax (expense) benefit103,939
 8,658
Income and mining tax (expense) benefit10(2,844) 5,546  1,095  14,204  
Income (loss) from continuing operations $(11,900) $(24,894)Income (loss) from continuing operations$(1,209) $(36,764) $(13,109) $(61,658) 
Income (loss) from discontinued operations18—
 5,693
Income (loss) from discontinued operations18—  —  —  5,693  
NET INCOME (LOSS) $(11,900) $(19,201)NET INCOME (LOSS)$(1,209) $(36,764) $(13,109) $(55,965) 
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:    
Unrealized gain (loss) on cash flow hedges, net of tax of $22 for the three months ended March 31, 2020 206
 —
OTHER COMPREHENSIVE INCOME (LOSS):OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative contracts designated as cash flow hedgesChange in fair value of derivative contracts designated as cash flow hedges(7,776) —  (7,570) —  
Unrealized gain (loss) on debt and equity securities —
 59
Unrealized gain (loss) on debt and equity securities—  —  —  59  
Other comprehensive income (loss) 206
 59
Other comprehensive income (loss)(7,776) —  (7,570) 59  
COMPREHENSIVE INCOME (LOSS) $(11,694) $(19,142)COMPREHENSIVE INCOME (LOSS)$(8,985) $(36,764) $(20,679) $(55,906) 
    
NET INCOME (LOSS) PER SHARE15   NET INCOME (LOSS) PER SHARE15
Basic income (loss) per share:    Basic income (loss) per share:
Net income (loss) from continuing operations $(0.05) $(0.12)Net income (loss) from continuing operations$(0.01) $(0.18) $(0.05) $(0.30) 
Net income (loss) from discontinued operations 0.00
 0.03
Net income (loss) from discontinued operations—  —  —  0.03  
Basic(2)
 $(0.05) $(0.09)
Basic(2)
$(0.01) $(0.18) $(0.05) $(0.27) 
Diluted income (loss) per share:    Diluted income (loss) per share:
Net income (loss) from continuing operations $(0.05) $(0.12)Net income (loss) from continuing operations$(0.01) $(0.18) $(0.05) $(0.30) 
Net income (loss) from discontinued operations 0.00
 0.03
Net income (loss) from discontinued operations—  —  —  0.03  
Diluted(2)
 $(0.05) $(0.09)
Diluted(2)
$(0.01) $(0.18) $(0.05) $(0.27) 
(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.
5

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
 NotesIn thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)$(1,209) $(36,764) $(13,109) $(55,965) 
(Income) loss from discontinued operations—  —  —  (5,693) 
Adjustments:
Amortization27,876  43,204  64,038  85,080  
Accretion2,908  3,007  5,755  5,950  
Deferred taxes(1,545) (9,158) (7,032) (17,417) 
Fair value adjustments, net12(10,067) 5,296  (1,248) (3,824) 
Stock-based compensation112,287  1,987  4,300  4,210  
Gain on modification of right of use lease7—  —  (4,051) —  
Write-downs5,208  11,872  15,589  27,319  
Deferred revenue recognition17(8,134) —  (15,682) —  
Other(913) 4,731  (2,005) 5,981  
Changes in operating assets and liabilities:
Receivables(1,536) (7,624) (2,349) (17,359) 
Prepaid expenses and other current assets1,081  (834) 735  (3,518) 
Inventory and ore on leach pads(8,056) (14,391) (29,981) (33,212) 
Accounts payable and accrued liabilities2,047  25,109  (13,004) 19,037  
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS9,947  26,435  1,956  10,589  
CASH PROVIDED BY (USED IN )OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS—  —  —  —  
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES9,947  26,435  1,956  10,589  
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures(16,682) (20,749) (38,890) (48,187) 
Proceeds from the sale of assets189  57  4,515  904  
Sale of investments19,802  1,102  19,802  1,102  
Proceeds from notes receivable—  2,000  —  7,168  
Other(183) 277  (200) 2,018  
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS2,946  (17,313) (14,773) (36,995) 
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS—  —  —  —  
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES2,946  (17,313) (14,773) (36,995) 
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock19—  48,887  —  48,887  
Issuance of notes and bank borrowings, net of issuance costs8100,000  —  150,000  15,000  
Payments on debt, finance leases, and associated costs8(95,713) (90,812) (101,614) (113,273) 
Silvertip contingent consideration17—  —  (18,750) —  
Other141  —  (1,832) (3,259) 
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS4,428  (41,925) 27,804  (52,645) 
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS—  —  —  —  
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES4,428  (41,925) 27,804  (52,645) 
Effect of exchange rate changes on cash and cash equivalents929  56  303  257  
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH18,250  (32,747) 15,290  (78,794) 
Less net cash used in discontinued operations—  —  —  —  
18,250  (32,747) 15,290  (78,794) 
Cash, cash equivalents and restricted cash at beginning of period54,058  72,022  57,018  118,069  
Cash, cash equivalents and restricted cash at end of period$72,308  $39,275  $72,308  $39,275  
  Three Months Ended March 31,
  2020 2019
 NotesIn thousands
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income (loss) $(11,900) $(19,201)
(Income) loss from discontinued operations —
 (5,693)
Adjustments:    
Amortization 36,162
 41,876
Accretion 2,847
 2,943
Deferred taxes (5,487) (8,259)
Fair value adjustments, net128,819
 (9,120)
Stock-based compensation112,013
 2,223
Gain on modification of right of use lease7(4,051) —
Write-downs 10,381
 15,447
Deferred revenue recognition17(7,548) (445)
Other (1,092) 1,695
Changes in operating assets and liabilities:    
Receivables (813) (9,735)
Prepaid expenses and other current assets (346) (2,684)
Inventory and ore on leach pads (21,925) (18,821)
Accounts payable and accrued liabilities (15,051) (6,072)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS (7,991) (15,846)
CASH PROVIDED BY (USED IN )OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS —
 —
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (7,991) (15,846)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Capital expenditures (22,208) (27,438)
Proceeds from the sale of assets184,506
 847
Proceeds from notes receivable —
 5,168
Other (17) 1,741
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS (17,719) (19,682)
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS —
 —
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (17,719) (19,682)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Issuance of notes and bank borrowings, net of issuance costs850,000
 15,000
Payments on debt, finance leases, and associated costs8(5,901) (22,356)
Silvertip contingent consideration17(18,750) —
Other (1,973) (3,364)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS 23,376
 (10,720)
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS —
 —
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 23,376
 (10,720)
Effect of exchange rate changes on cash and cash equivalents (626) 201
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (2,960) (46,047)
Less net cash used in discontinued operations(1)
 —
 —
  (2,960) (46,047)
Cash, cash equivalents and restricted cash at beginning of period 57,018
 118,069
Cash, cash equivalents and restricted cash at end of period $54,058
 $72,022


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.
6

COEUR MINING, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

In thousandsCommon
Stock
Shares		Common
Stock Par
Value		Additional
Paid-In Capital		Accumulated
Deficit		Accumulated
Other
Comprehensive
Income (Loss)		Total
Balances at December 31, 2019241,529  $2,415  $3,598,472  $(2,933,747) $(136) $667,004  
Net income (loss)—  —  —  (11,900) —  (11,900) 
Other comprehensive income (loss)—  —  —  —  206  206  
Common stock issued for Silvertip contingent consideration payment878  9  5,286  —  —  5,295  
Common stock issued/canceled under long-term incentive plans and director fees and options, net1,179  12  27  —  —  39  
Balances at March 31, 2020243,586  $2,436  $3,603,785  $(2,945,647) $70  $660,644  
Net income (loss)—  —  —  (1,209) —  (1,209) 
Other comprehensive income (loss)—  —  —  —  (7,776) (7,776) 
Common stock issued/canceled under long-term incentive plans and director fees and options, net146  1  2,197  —  —  2,198  
Balances at June 30, 2020243,732  $2,437  $3,605,982  $(2,946,856) $(7,706) $653,857  
In thousands
Common
Stock
Shares
 
Common
Stock Par
Value
 
Additional
Paid-In Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Income (Loss)
 Total
Balances at December 31, 2019241,529
 $2,415
 $3,598,472
 $(2,933,747) $(136) $667,004
Net income (loss)—
 —
 —
 (11,900) —
 (11,900)
Other comprehensive income (loss)—
 —
 —
 —
 206
 206
Common stock issued for Silvertip contingent consideration payment878
 9
 5,286
 —
 —
 5,295
Common stock issued/canceled under long-term incentive plans and director fees and options, net1,179
 12
 27
 —
 —
 39
Balances at March 31, 2020243,586
 $2,436
 $3,603,785
 $(2,945,647) $70
 $660,644

In thousandsIn thousandsCommon
Stock
Shares		Common
Stock Par
Value		Additional
Paid-In Capital		Accumulated
Deficit		Accumulated
Other
Comprehensive
Income (Loss)		Total
In thousands
Common
Stock
Shares
 
Common
Stock Par
Value
 
Additional
Paid-In Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Income (Loss)
 Total
Balances at December 31, 2018203,310
 $2,033
 $3,443,082
 $(2,592,544) $(59) 852,512
Balances at December 31, 2018203,310  $2,033  $3,443,082  $(2,592,544) $(59) 852,512  
Net income (loss)—
 —
 —
 (19,201) —
 (19,201)Net income (loss)—  —  —  (19,201) —  (19,201) 
Other comprehensive income (loss)—
 —
 —
 —
 59
 59
Other comprehensive income (loss)—  —  —  —  59  59  
Common stock issued under stock-based compensation plans, net1,801
 18
 (1,053) —
 —
 (1,035)Common stock issued under stock-based compensation plans, net1,801  18  (1,053) —  —  (1,035) 
Balances at March 31, 2019205,111
 $2,051
 $3,442,029
 $(2,611,745) $—
 $832,335
Balances at March 31, 2019205,111  $2,051  $3,442,029  $(2,611,745) $—  832,335  
Net income (loss)Net income (loss)—  —  —  (36,764) —  (36,764) 
Common stock issued under "at the market" stock offeringCommon stock issued under "at the market" stock offering16,631  166  48,721  —  —  48,887  
Common stock issued under stock-based compensation plans, netCommon stock issued under stock-based compensation plans, net117  2  1,986  —  —  1,988  
Balances at June 30, 2019Balances at June 30, 2019221,859  $2,219  $3,492,736  $(2,648,509) $—  $846,446  
The accompanying notes are an integral part of these Consolidated Financial Statements.
7
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, 2020. The condensed consolidated December 31, 2019 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, 2019 (the “2019 10-K”).

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant Accounting Policies
Please see Note 2 -- Summary of Significant Accounting Policies contained in the 2019 10-K.
Use of Estimates
The Company's Condensed Consolidated Financial Statements have been prepared in accordance with United States Generally Accepted Accounting Principles. The preparation of the Company's Condensed Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements and reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Accordingly, actual results will differ from the amounts estimated in these financial statements. The severity, magnitude and duration, as well as the economic consequences of the COVID-19 pandemic, are uncertain, rapidly changing and difficult to predict. Therefore, the Company’s accounting estimates and assumptions may change over time in response to the COVID-19 pandemic and may change materially in future periods.
Revenue Recognition
The Company’s gold stream agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) provided for a $20.0 million, net, deposit paid by Franco-Nevada in exchange for the right and obligation, commencing in 2016, to purchase 50% of a portion of Palmarejo gold production at the lesser of $800 or market price per ounce. Because there is no minimum obligation associated with the deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation. The streaming agreement represents a contract liability under ASC 606, which requires the Company to recognize ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada. See Note 17 -- Commitments and Contingencies for additional detail.
The following table presents a rollforward of the Franco-Nevada contract liability balance:
 Three months ended March 31,
In thousands2020 2019
Opening Balance$11,061
 $12,918
Revenue Recognized(556) $(445)
Closing Balance$10,505
 $12,473

Three Months Ended June 30,Six Months Ended June 30,
In thousands2020201920202019
Opening Balance$10,505  $12,473  $11,061  $12,918  
Revenue Recognized(116) (313) (672) (758) 
Closing Balance$10,389  $12,160  $10,389  $12,160  
In December 2019,June 2020, the Company received a $15.0 million prepayment for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined below). The Amended Sales Contract represents a contract liability under ASC 606, which requires the Company to recognize ratably recognize a portion of the deposit as revenue for each gold ounce delivered to the customer. See Note 17 -- Commitments and Contingencies for additional detail.
The following table presents a rollforward of the Amended Sales Contract liability balance:
Three Months Ended June 30,Six Months Ended June 30,
In thousands2020201920202019
Opening Balance$8,018  $—  $15,010  $—  
Additions15,006  25,021  15,006  25,021  
Revenue Recognized(8,018) —  (15,010) —  
Closing Balance$15,006  $25,021  $15,006  $25,021  
 Three months ended March 31,
In thousands2020 2019
Opening Balance$15,010
 $—
Revenue Recognized(6,992) $—
Closing Balance$8,018
 $—
8
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

Recently Adopted Accounting Standards
In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326)”. The new standard is effective for reporting periods beginning after December 15, 2019. The standard replaces the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires the use of a forward-looking expected credit loss model for accounts receivables, loans, and other financial instruments. The standard requires a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. WeThe Company adopted the new credit loss standard effective January 1, 2020. The adoption of the new standard did not have a material impact on the Company’s consolidated net income, financial position or cash flows.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

Recently Issued Accounting Standards
In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740)” which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for interim and annual periods beginning after December 15, 2020 (January 1, 2021 for the Company). Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its consolidated financial statements.

9
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements


NOTE 3 – SEGMENT REPORTING
The Company’s operating segments include the Palmarejo, Rochester, Kensington, Wharf and Silvertip mines. Except for the Silvertip mine, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. The Silvertip mine, which temporarily suspended mining and processing activities in February 2020, is engaged in the discovery, mining, and production of silver, zinc and lead. Other includes the Sterling/Crown and La Preciosa projects, other mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts.
The 2019 novel strain of coronavirus causing a contagious respiratory disease known as COVID-19, which was declared a pandemic by the World Health Organization on March 11, 2020, poses a material risk to our business and operations. Early in the second quarter of 2020, we temporarily suspended active mining and processing activities at the Palmarejo complex in the State of Chihuahua, Mexico, in accordance with a government-mandated decree in response to COVID-19, and we began taking steps to restart active mining, processing and exploration activities at Palmarejo in accordance with updated guidance from the government approximately 45 days later. In addition, we are requiring all employees who travel to the Kensington mine to submit to a 7-day quarantine and testing protocol in Juneau, Alaska before traveling to the mine. We believe this is an important step to protect the health and safety of all workers who stay at the Kensington camp, although it has required changes to worker scheduling and is expected to result in higher labor costs due to additional overtime pay and pay during the quarantine period. Incremental costs associated with the Company’s COVID-19 health and safety protocols are recorded in Pre-development, reclamation, and other expenses in our Condensed Consolidated Statement of Comprehensive Income (Loss) and are included in Other operating expenses in the table below. For additional information, please see the section titled “Risk Factors” included in Item 1A.
Financial information relating to the Company’s segments is as follows (in thousands):
Three months ended March 31, 2020Palmarejo Rochester Kensington Wharf Silvertip Other Total
Revenue             
Gold sales$41,647
 $8,666
 $51,666
 $25,626
 $—
 $—
 $127,605
Silver sales32,692
 10,739
 —
 248
 1,230
 —
 44,909
Zinc sales—
 —
 —
 —
 (662) —
 (662)
Lead sales—
 —
 —
 —
 1,315
 —
 1,315
Metal sales74,339
 19,405
 51,666
 25,874
 1,883
 —
 173,167
Costs and Expenses             
Costs applicable to sales(1)
35,974
 16,956
 30,507
 17,823
 17,657
 —
 118,917
Amortization13,175
 2,904
 11,922
 2,444
 5,345
 372
 36,162
Exploration1,492
 220
 1,772
 4
 251
 2,647
 6,386
Other operating expenses722
 1,246
 331
 442
 2,374
 10,360
 15,475
Other income (expense)             
Fair value adjustments, net—
 —
 —
 —
 —
 (8,819) (8,819)
Interest expense, net(155) (268) (309) (51) (259) (4,086) (5,128)
Other, net(47) (53) 71
 (13) 1,130
 793
 1,881
Income and mining tax (expense) benefit2,287
 (43) —
 (475) —
 2,170
 3,939
Income (loss) from continuing operations$25,061

$(2,285) $6,896

$4,622

$(22,873) $(23,321)
$(11,900)
Income (loss) from discontinued operations$—
 $—
 $—
 $—
 $—
 $—
 $—
Segment assets(2)
$307,662
 $295,972
 $188,470
 $85,531
 $161,214
 $164,745
 $1,203,594
Capital expenditures$7,080
 $5,058
 $4,808
 $409
 $4,616
 $237
 $22,208

Three months ended June 30, 2020PalmarejoRochesterKensingtonWharfSilvertipOtherTotal
Revenue
Gold sales$23,669  $8,982  $55,177  $40,074  $—  $—  $127,902  
Silver sales14,301  11,661  —  385  —  —  26,347  
Zinc sales—  —  —  —  —  —  —  
Lead sales—  —  —  —  —  —  —  
Metal sales37,970  20,643  55,177  40,459  —  —  154,249  
Costs and Expenses
Costs applicable to sales(1)18,825  18,336  30,382  22,472  —  —  90,015  
Amortization7,270  3,012  12,853  3,181  1,231  329  27,876  
Exploration903  1,844  2,577  101  2,902  3,528  11,855  
Other operating expenses3,179  1,213  3,519  (118) 9,480  10,018  27,291  
Other income (expense)
Fair value adjustments, net—  —  —  —  —  10,067  10,067  
Interest expense, net(311) (300) (214) (50) (220) (4,670) (5,765) 
Other, net(1,651) (25) (36) (6) 424  1,415  121  
Income and mining tax (expense) benefit(3,384) —  (474) (1,701) (255) 2,970  (2,844) 
Income (loss) from continuing operations$2,447  $(4,087) $5,122  $13,066  $(13,664) $(4,093) $(1,209) 
Income (loss) from discontinued operations$—  $—  $—  $—  $—  $—  $—  
Segment assets(2)$307,215  $307,221  $180,290  $84,881  $159,995  $169,273  $1,208,875  
Capital expenditures$4,533  $5,803  $3,909  $265  $1,949  $223  $16,682  
(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

10
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

Three months ended March 31, 2019Palmarejo Rochester Kensington Wharf Silvertip Other Total
Three months ended June 30, 2019Three months ended June 30, 2019PalmarejoRochesterKensingtonWharfSilvertipOtherTotal
Revenue             Revenue
Gold sales$31,600
 $11,053
 $40,286
 $23,825
 —
 $—
 $106,764
Gold sales$33,916  $11,195  $45,161  $20,054  $—  $—  $110,326  
Silver sales21,625
 15,317
 —
 217
 2,955
 —
 40,114
Silver sales25,406  14,257  —  189  5,111  —  44,963  
Zinc sales—
 —
 —
 —
 5,634
 —
 5,634
Zinc sales—  —  —  —  2,604  —  2,604  
Lead sales—
 —
 —
 —
 2,358
 —
 2,358
Lead sales—  —  —  —  4,230  —  4,230  
Metal sales53,225
 26,370
 40,286
 24,042
 10,947
 —
 154,870
Metal sales59,322  25,452  45,161  20,243  11,945  —  162,123  
Costs and Expenses          

  Costs and Expenses
Costs applicable to sales(1)
33,244
 22,454
 32,175
 17,392
 26,385
 —
 131,650
Costs applicable to sales(1)Costs applicable to sales(1)36,496  24,693  29,133  15,466  26,160  —  131,948  
Amortization14,528
 4,037
 11,727
 2,681
 8,426
 477
 41,876
Amortization14,212  3,963  12,537  2,225  9,878  389  43,204  
Exploration1,010
 90
 481
 —
 61
 2,072
 3,714
Exploration1,140  96  2,024  —  670  1,789  5,719  
Other operating expenses702
 962
 271
 664
 241
 11,068
 13,908
Other operating expenses1,769  1,346  410  753  386  7,420  12,084  
Other income (expense)          

  Other income (expense)
Fair value adjustments, net—
 —
 —

—
 —
 9,120
 9,120
Fair value adjustments, net—  —  —  —  —  (5,296) (5,296) 
Interest expense, net(136)
(142) (229)
(21) (197) (5,729) (6,454)Interest expense, net(112) (170) (310) (28) (390) (5,815) (6,825) 
Other, net(1,040)
(27) 13

86
 (188) 1,216
 60
Other, net(574) 43  (16) 239  (33) 984  643  
Income and mining tax (expense) benefit1,291

144
 —

(173) 9,751
 (2,355) 8,658
Income and mining tax (expense) benefit(345) (814) —  (304) 7,589  (580) 5,546  
Income (loss) from continuing operations$3,856

$(1,198)
$(4,584)
$3,197

$(14,800) $(11,365) $(24,894)Income (loss) from continuing operations4,674  (5,587) 731  1,706  (17,983) (20,305) (36,764) 
Income (loss) from discontinued operations$—
 $—
 $—
 $—
 —
 $5,693
 $5,693
Income (loss) from discontinued operations—  —  —  —  —  —  —  
Segment assets(2)
$360,734
 $271,403
 $221,164
 $103,579
 417,089
 $174,430
 $1,548,399
Segment assets(2)Segment assets(2)357,415  274,406  214,096  104,070  415,333  170,145  1,535,465  
Capital expenditures$8,676
 $4,645
 $9,356
 $431
 4,077
 $253
 $27,438
Capital expenditures7,566  2,772  4,875  171  5,020  345  20,749  
(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

AssetsMarch 31, 2020
December 31, 2019
Total assets for reportable segments$1,203,594
 $1,215,783
Cash and cash equivalents52,895
 55,645
Other assets92,608

107,208
Total consolidated assets$1,349,097

$1,378,636


Six months ended June 30, 2020PalmarejoRochesterKensingtonWharfSilvertipOtherTotal
Revenue
Gold sales$65,316  $17,648  $106,843  $65,700  $—  $—  $255,507  
Silver sales46,993  22,400  —  633  1,230  —  71,256  
Zinc sales—  —  —  —  (662) —  (662) 
Lead sales—  —  —  —  1,315  —  1,315  
Metal sales112,309  40,048  106,843  66,333  1,883  —  327,416  
Costs and Expenses
Costs applicable to sales(1)
54,799  35,292  60,889  40,295  17,657  —  208,932  
Amortization20,445  5,916  24,775  5,625  6,576  701  64,038  
Exploration2,395  2,064  4,349  105  3,153  6,175  18,241  
Other operating expenses3,901  2,459  3,850  324  11,854  20,378  42,766  
Other income (expense)
Fair value adjustments, net—  —  —  —  —  1,248  1,248  
Interest expense, net(466) (568) (523) (101) (479) (8,756) (10,893) 
Other, net(1,698) (78) 35  (19) 1,554  2,208  2,002  
Income and mining tax (expense) benefit(1,097) (43) (474) (2,176) (255) 5,140  1,095  
Income (loss) from continuing operations$27,508  $(6,372) $12,018  $17,688  $(36,537) $(27,414) $(13,109) 
Income (loss) from discontinued operations$—  $—  $—  $—  $—  $—  $—  
Segment assets(2)
$307,215  $307,221  $180,290  $84,881  $159,995  $169,273  $1,208,875  
Capital expenditures$11,613  $10,861  $8,717  $674  $6,565  $460  $38,890  
Geographic Information(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Long-Lived AssetsMarch 31, 2020
December 31, 2019
United States$486,989
 $494,286
Mexico306,651
 312,168
Canada147,828
 146,804
Other3,510
 7,486
Total$944,978

$960,744

RevenueThree months ended March 31,
2020 2019
United States$96,945
 $90,699
Mexico74,339
 53,225
Canada1,883
 10,946
Total$173,167
 $154,870


11
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

Six months ended June 30, 2019PalmarejoRochesterKensingtonWharfSilvertipOtherTotal
Revenue
Gold sales$65,516  $22,248  $85,447  $43,879  $—  $—  $217,090  
Silver sales47,031  29,574  —  406  8,066  —  85,077  
Zinc sales—  —  —  —  8,238  —  8,238  
Lead sales—  —  —  —  6,588  —  6,588  
Metal sales112,547  51,822  85,447  44,285  22,892  —  316,993  
Costs and Expenses
Costs applicable to sales(1)
69,740  47,147  61,308  32,858  52,545  —  263,598  
Amortization28,740  8,000  24,264  4,906  18,304  866  85,080  
Exploration2,150  186  2,505  —  731  3,861  9,433  
Other operating expenses2,471  2,308  681  1,417  627  18,488  25,992  
Other income (expense)
Fair value adjustments, net—  —  —  —  —  3,824  3,824  
Interest expense, net(248) (312) (539) (49) (587) (11,544) (13,279) 
Other, net(1,614) 16  (3) 325  (221) 2,200  703  
Income and mining tax (expense) benefit946  (670) —  (477) 17,340  (2,935) 14,204  
Income (loss) from continuing operations$8,530  $(6,785) $(3,853) $4,903  $(32,783) $(31,670) $(61,658) 
Income (loss) from discontinued operations$—  $—  $—  $—  —  $5,693  $5,693  
Segment assets(2)
$357,415  $274,406  $214,096  $104,070  415,333  $170,145  $1,535,465  
Capital expenditures$16,242  $7,417  $14,231  $602  9,097  $598  $48,187  
(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
AssetsJune 30, 2020December 31, 2019
Total assets for reportable segments$1,208,875  $1,215,783  
Cash and cash equivalents70,924  55,645  
Other assets81,281  107,208  
Total consolidated assets$1,361,080  $1,378,636  

Geographic Information
Long-Lived AssetsJune 30, 2020December 31, 2019
United States$485,972  $494,286  
Mexico303,504  312,168  
Canada148,574  146,804  
Other663  7,486  
Total$938,713  $960,744  
RevenueThree months ended June 30,Six months ended June 30,
2020201920202019
United States$116,279  $90,855  $213,224  $181,554  
Mexico37,970  59,322  112,309  112,547  
Canada—  11,946  1,883  22,892  
Total154,249  $162,123  $327,416  $316,993  

12
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 4 – RECEIVABLES
Receivables consist of the following:
In thousandsMarch 31, 2020 December 31, 2019
Current receivables:   
Trade receivables$6,607
 $6,028
Value added tax (“VAT”) receivable11,354
 10,729
Income tax receivable116
 105
Other1,645
 1,804
 $19,722
 $18,666
Non-current receivables:   
VAT receivable(1)
$22,449
 $28,009
RMC receivable(2)
700
 700
 23,149
 28,709
Total receivables$42,871
 $47,375

In thousandsJune 30, 2020December 31, 2019
Current receivables:
Trade receivables$5,611  $6,028  
Value added tax (“VAT”) receivable13,748  10,729  
Income tax receivable196  105  
Other2,431  1,804  
$21,986  $18,666  
Non-current receivables:
VAT receivable(1)
$22,978  $28,009  
RMC receivable(2)
—  700  
22,978  28,709  
Total receivables$44,964  $47,375  
(1) Represents VAT that was paid to the Mexican government associated with Coeur Mexicana’s prior royalty agreement with a subsidiary of Franco-Nevada Corporation. The Company continues to pursue recovery from the Mexican government (including through ongoing litigation). See Note 17 -- Commitments and Contingencies for additional detail. The $5.6$5.0 million decrease in the threesix months ended March 31,June 30, 2020 is attributable to a weaker Mexican Peso.
(2) Represents receivable due from the successor to Republic Metals Corporation, whose filed bankruptcy filing in November 2018 impacted approximately 0.4 million ounces of Coeur’s silver and 6,500 ounces of Coeur’s gold. In September 2019,June 2020, the Company received a partial settlement$0.7 million payment of $2.6 million in respect of certain of its claims in the bankruptcy proceedings and as a result, the Company recorded a $1.0 million charge in proceedings.
Other, net, against the receivable balance to reflect the new carrying value of the Company’s remaining claims.

NOTE 5 – INVENTORY AND ORE ON LEACH PADS
Inventory consists of the following:
In thousandsMarch 31, 2020 December 31, 2019
Inventory:   
Concentrate2,227
 $10,772
Precious metals13,330
 20,761
Supplies36,300
 24,353
 51,857
 55,886
Ore on leach pads:   
Current83,035
 66,192
Non-current66,703
 71,539
 149,738
 137,731
Total inventory and ore on leach pads$201,595
 $193,617

In thousandsJune 30, 2020December 31, 2019
Inventory:
Concentrate$2,897  $6,557  
Precious metals15,272  14,040  
Supplies34,583  35,289  
52,752  55,886  
Ore on leach pads:
Current75,111  66,192  
Non-current78,605  71,539  
153,716  137,731  
Long-term stock pile$2,809  $—  
Total inventory and ore on leach pads$209,277  $193,617  
Prior to the temporary suspension of mining activities at Silvertip, Silvertip recognized inventory write-downs of $10.4$12.5 million in the threesix months ended March 31,June 30, 2020, which is recognized in Costs applicable to sales, as a result of lower than expected production levels, grades and recovery rates as well as reduced process plant availability.

13
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements


NOTE 6 – INVESTMENTS
Equity and Debt Securities
The Company makes strategic investments in equity and debt securities of silver and gold exploration, development and royalty and streaming companies.
At June 30, 2020
In thousandsCostGross
Unrealized
Losses		Gross
Unrealized
Gains		Estimated
Fair Value
Equity Securities
Metalla Royalty & Streaming Ltd.$1,852  $—  $2,964  $4,816  
Integra Resources Corp.5,000  —  3,023  8,023  
Rockhaven Resources Ltd.2,064  (398) —  1,666  
Other448  —  133  581  
Equity securities$9,364  $(398) $6,120  $15,086  
At March 31, 2020At December 31, 2019
In thousandsCost 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
In thousandsCostGross
Unrealized
Losses		Gross
Unrealized
Gains		Estimated
Fair Value
Equity Securities       Equity Securities
Metalla Royalty & Streaming Ltd.$10,463
 $—
 $11,546
 $22,009
Metalla Royalty & Streaming Ltd.$10,463  $—  $17,725  $28,188  
Integra Resources Corp.5,000
 (1,463) —
 3,537
Integra Resources Corp.5,000  —  355  5,355  
Rockhaven Resources Ltd.2,064
 (1,101) —
 963
Rockhaven Resources, Ltd.Rockhaven Resources, Ltd.2,064  (376) —  1,688  
Other1,304
 (987) —
 317
Other1,304  (889) —  415  
Equity securities$18,831
 $(3,551) $11,546
 $26,826
Equity securities$18,831  $(1,265) $18,080  $35,646  
On June 30, 2020, the Company completed the sale of 3,910,000 shares of common stock of Metalla Royalty & Streaming Ltd. (“Metalla”) (“Metalla Common Shares”) at a price of $5.30 per Metalla Common Share for gross proceeds of $20.7 million. After transaction related expenses of $1.3 million, the Company recorded a realized gain of $11.6 million on the sale of the Metalla Common Shares. In addition, on June 30, 2020, one of the Company’s subsidiaries completed the repurchase from Metalla of a 0.3875% royalty interest in the Company’s Wharf mine in exchange for 421,554 Metalla Common Shares. Based on the closing price of Metalla Common Shares on June 30, 2020, the Company recorded a realized gain of $1.4 million on the royalty repurchase transaction. Following the completion of both transactions, the Company held 909,756 Metalla Common Shares.


 At December 31, 2019
In thousandsCost 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Equity Securities       
Metalla Royalty & Streaming Ltd.$10,463
 $—
 $17,725
 $28,188
Integra Resources Corp.5,000
 —
 355
 $5,355
Rockhaven Resources, Ltd.2,064
 (376) —
 1,688
Other1,304
 (889) —
 415
Equity securities$18,831
 $(1,265) $18,080
 $35,646


NOTE 7 – LEASES
Right of Use Assets and Liabilities
The following table summarizes quantitative information pertaining to the Company’s finance and operating leases.
 Three Months Ended March 31,
In thousands2020 2019
Lease Cost   
Operating lease cost$2,897
 $3,449
    
Short-term operating lease cost$1,667
 $2,751
    
Finance Lease Cost:   
Amortization of leased assets$5,973
 $2,968
Interest on lease liabilities1,005
 1,107
Total finance lease cost$6,978
 $4,075
Supplemental cash flow information related to leases was as follows:
Three months ended June 30,Six months ended June 30,
In thousands2020201920202019
Lease Cost
Operating lease cost$2,855  $2,666  $5,902  $6,115  
Short-term operating lease cost$2,310  $3,734  $3,828  $6,485  
Finance Lease Cost:
Amortization of leased assets$6,424  $4,418  $12,397  $9,912  
Interest on lease liabilities920  1,142  1,925  2,249  
Total finance lease cost$7,344  $5,560  $14,322  $12,161  
 Three Months Ended March 31,
In thousands2020 2019
Other Information   
Cash paid for amounts included in the measurement of lease liabilities:   
Operating cash flows from operating leases$4,871
 $6,200
Operating cash flows from finance leases$1,005
 $1,107
Financing cash flows from finance leases$5,901
 $7,356
14

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


        Supplemental cash flow information related to leases was as follows:
Three months ended June 30,Six months ended June 30,
In thousands2020201920202019
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,480  $6,400  $10,351  $12,610  
Operating cash flows from finance leases$920  $1,142  $1,925  $2,249  
Financing cash flows from finance leases$5,713  $8,812  $11,614  $16,273  
Supplemental balance sheet information related to leases was as follows:
In thousandsMarch 31, 2020 December 31, 2019
Operating Leases   
Other assets, non-current$44,436
 $49,169
    
Accrued liabilities and other$12,198
 $13,104
Other long-term liabilities32,448
 40,634
Total operating lease liabilities$44,646
 $53,738
    
Finance Leases   
Property and equipment, gross$102,768
 $103,903
Accumulated depreciation(43,734) (42,209)
Property and equipment, net$59,034
 $61,694
    
Debt, current$23,588
 $22,746
Debt, non-current42,459
 45,866
Total finance lease liabilities$66,047
 $68,612
    
Weighted Average Remaining Lease Term   
Weighted-average remaining lease term - finance leases1.63
 1.73
Weighted-average remaining lease term - operating leases4.47
 4.70
    
Weighted Average Discount Rate   
Weighted-average discount rate - finance leases5.35% 5.40%
Weighted-average discount rate - operating leases5.19% 5.20%

In thousandsJune 30, 2020December 31, 2019
Operating Leases
Other assets, non-current$42,150  $49,169  
Accrued liabilities and other$11,804  $13,104  
Other long-term liabilities30,240  40,634  
Total operating lease liabilities$42,044  $53,738  
Finance Leases
Property and equipment, gross$101,466  $103,903  
Accumulated depreciation(49,803) (42,209) 
Property and equipment, net$51,663  $61,694  
Debt, current$27,176  $22,746  
Debt, non-current34,205  45,866  
Total finance lease liabilities$61,381  $68,612  
Weighted Average Remaining Lease Term
Weighted-average remaining lease term - finance leases1.481.73
Weighted-average remaining lease term - operating leases4.254.70
Weighted Average Discount Rate
Weighted-average discount rate - finance leases5.36 %5.40 %
Weighted-average discount rate - operating leases5.19 %5.20 %
In the threesix months ended March 31,June 30, 2020, the Company entered into an agreement to modify one of its operating leases, significantly reducing the lease amount and lease term, thereby decreasing the operating lease liability at remeasurement. The Company recognized a gain of $4.1 million in connection with this lease modification, which is recognized in Pre-development, reclamation, and other, together with the adjustment to the right of use asset and operating lease liability.
Minimum future lease payments under finance and operating leases with terms longer than one year are as follows:
At March 31, (In thousands)  
 Operating leasesFinance leases
2020$9,524
$19,938
202111,119
25,412
202210,684
18,779
202310,205
6,817
20248,605
1,690
Thereafter—
145
Total$50,137
$72,781
Less: imputed interest(5,491)(6,734)
Net lease obligation$44,646
$66,047
15


NOTE 8 – DEBT
 March 31, 2020 December 31, 2019
In thousandsCurrent Non-Current Current Non-Current
2024 Senior Notes, net(1)
$—
 $227,062
 $—
 $226,885
Revolving Credit Facility(2)
—
 50,000
 —
 —
Finance lease obligations23,588
 42,459
 22,746
 45,866
 $23,588
 $319,521
 $22,746
 $272,751

(1) Net of unamortized debt issuance costs of $2.9 million and $3.1 million at March 31, 2020 and December 31, 2019, respectively.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements


At June 30, (In thousands)
Operating leasesFinance leases
2020$6,346  $15,686  
202111,119  24,398  
202210,636  17,750  
202310,205  7,436  
20248,605  1,690  
Thereafter—  128  
Total$46,911  $67,088  
Less: imputed interest(4,867) (5,707) 
Net lease obligation$42,044  $61,381  

NOTE 8 – DEBT
 June 30, 2020December 31, 2019
In thousandsCurrentNon-CurrentCurrentNon-Current
2024 Senior Notes, net(1)
$—  $227,238  $—  $226,885  
Revolving Credit Facility(2)
—  60,000  —  —  
Finance lease obligations27,176  34,205  22,746  45,866  
$27,176  $321,443  $22,746  $272,751  
(1) Net of unamortized debt issuance costs of $2.8 million and $3.1 million at June 30, 2020 and December 31, 2019, respectively.
(2) Unamortized debt issuance costs of $2.1$1.9 million and $2.3 million at March 31,June 30, 2020 and December 31, 2019, respectively, included in Other Non-Current Assets.
2024 Senior Notes
In May 2017, the Company completed an offering of $250.0 million in aggregate principal amount of 5.875% Senior Notes due 2024 (“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, followed by an exchange offer for publicly-traded 2024 Senior Notes. For more details, please see Note 12 -- Debt contained in the 2019 10-K. 
Revolving Credit Facility
At March 31,June 30, 2020, the Company had $200.0$60.0 million availabledrawn on, and $20.5 million in letters of credit outstanding under, its $250.0 million revolving credit facility (the “RCF”) provided pursuant to the credit agreement originally entered into in September 2017 (asand subsequently amended the “Credit Agreement”) among the Company, as borrower, and certain subsidiaries of the Company, as guarantors, and Bank of America, N.A, as administrative agent (the “Agent”), and Bank of America, N.A., Royal Bank of Canada, Bank of Montreal, Chicago Branch, and the Bank of Nova Scotia as lenders (the “RCF Lenders”“RCF”)., leaving $169.5 million available under the RCF. At March 31,June 30, 2020, the interest rate on the principal of the RCF was 3.4%2.7%.
Finance Lease Obligations
From time-to-time, the Company acquires mining equipment and facilities under finance lease agreements. In the threesix months ended March 31,June 30, 2020, the Company entered into new lease financing arrangements primarily for mining equipment at Kensington and Palmarejo. All capital lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments. See Note 7 -- Leases for additional qualitative and quantitative disclosures related to finance leasing arrangements.
16
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

Interest Expense
 Three Months Ended June 30,Six Months Ended June 30,
In thousands2020201920202019
2024 Senior Notes$3,378  $3,671  $6,756  $7,344  
Revolving Credit Facility1,204  1,953  1,753  3,806  
Finance lease obligations920  1,142  1,925  2,249  
Amortization of debt issuance costs390  390  771  732  
Accretion of Silvertip contingent consideration—  180  —  359  
Other debt obligations181  2  216  2  
Capitalized interest(308) (513) (528) (1,213) 
Total interest expense, net of capitalized interest$5,765  $6,825  $10,893  $13,279  
 Three Months Ended March 31,
In thousands2020 2019
2024 Senior Notes$3,378
 $3,673
Revolving Credit Facility549
 1,853
Finance lease obligations1,005
 1,107
Amortization of debt issuance costs381
 342
Accretion of Silvertip contingent consideration—
 179
Other debt obligations35

—
Capitalized interest(220) (700)
Total interest expense, net of capitalized interest$5,128
 $6,454


NOTE 9 – RECLAMATION
Reclamation and mine closure costs are based principally on legal and regulatory requirements. Management estimates costs associated with reclamation of mining properties. On an ongoing basis, management evaluates its estimates and assumptions, and future expenditures could differ from current estimates.
Changes to the Company’s asset retirement obligations for its operating sites are as follows:
 Three Months Ended March 31,
In thousands2020 2019
Asset retirement obligation - Beginning$134,543
 $133,508
Accretion2,804
 2,895
Settlements(719) (662)
Asset retirement obligation - Ending$136,628
 $135,741

Three Months Ended June 30,Six Months Ended June 30,
In thousands2020201920202019
Asset retirement obligation - Beginning$136,628  $135,741  $134,543  $133,508  
Accretion2,863  2,959  5,667  5,854  
Settlements(587) (1,155) (1,306) (1,817) 
Asset retirement obligation - Ending$138,904  $137,545  $138,904  $137,545  
The Company accrued $1.9$1.9 million at each of March 31,June 30, 2020 and December 31, 2019, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

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

NOTE 10 - 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, 2020 and 2019 by significant jurisdiction:

Three months ended June 30,Six months ended June 30,
 2020201920202019
In thousandsIncome (loss) before taxTax (expense) benefitIncome (loss) before taxTax (expense) benefitIncome (loss) before taxTax (expense) benefitIncome (loss) before taxTax (expense) benefit
United States$12,546  $827  $(16,835) $(1,399) $1,540  $91  $(22,882) $(3,561) 
Canada(15,621) 217  (27,568) 7,547  (41,650) 232  (54,093) 17,339  
Mexico4,805  (3,888) 2,292  (600) 26,163  743  1,521  424  
Other jurisdictions(95) —  (199) (2) (257) 29  (408) 2  
$1,635  $(2,844) $(42,310) $5,546  $(14,204) $1,095  $(75,862) $14,204  
 Three months ended March 31,
 2020 2019
In thousandsIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefit
United States$(11,005)$(736) $(6,047)$(2,162)
Canada(26,029)15
 (26,525)9,792
Mexico21,359
4,631
 (772)1,024
Other jurisdictions(164)29

(208)4
 $(15,839)$3,939
 $(33,552)$8,658

During the firstsecond quarter of 2020, the Company reported estimated income and mining tax benefitexpense of approximately $3.9$2.8 million, resulting in an effective tax rate of 24.9%173.9%. This compares to income tax benefit of $8.7$5.5 million for an effective tax rate of 25.8%13.1% during the firstsecond quarter of 2019. The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) the non-recognition of tax assets; (ii) foreign exchange rates; (iii) the impact of uncertain tax positions; (iv) variations in our income before income taxes; (v) geographic distribution of that income and (vi) mining taxes. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.
17
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company ultimately will be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see the section titled “Risk Factors” in the 2019 10-K.
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The statute of limitations remains open from 2016 forward for the U.S. federal jurisdiction and from 2011 forward for certain other foreign jurisdictions. As a result of statutes of limitation that will begin to expire within the next twelve months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease between $0.5 million and $1.5 million in the next twelve months.
At March 31,June 30, 2020 and December 31, 2019, the Company had $0.7$0.6 million and $2.7 million of total gross unrecognized tax benefits from continuing operations, respectively, that, if recognized, would positively impact the Company’s effective income tax rate. The Company’s continuing practice is to recognize potential interest and/or penalties related to unrecognized tax benefits as part of its income tax expense. At March 31,June 30, 2020 and December 31, 2019, the amount of accrued income-tax-related interest and penalties was $0.9$1.0 million and $2.3 million, respectively.

NOTE 11 – STOCK-BASED COMPENSATION
The Company has stock incentive plans for executives, directors and eligible employees. Stock awards include performance shares, restricted stock and stock options. Stock-based compensation expense in the three and six months ended March 31,June 30, 2020 was $2.3 million and 2019 was$4.3 million, respectively, compared to $2.0 million and $2.2$4.2 million for the three and six months ended June 30, 2019, respectively. At March 31,June 30, 2020, there was $9.9$12.3 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.71.8 years.
The following table summarizes the grants awarded during the threesix months ended March 31,June 30, 2020:
Grant dateRestricted
stock		Grant date fair
value of
restricted stock		Performance
shares		Grant date fair
value of
performance
shares
June 3, 2020167,125  $5.21  123,777  $3.91  
May 19, 2020—  $—  198,273  $3.91  
May 13, 202054,660  $3.97  998,618  $3.91  
February 25, 2020120,491  $4.94  —  $—  
February 24, 20201,304,763  $5.12  —  $—  
Grant date 
Restricted
stock
 
Grant date fair
value of
restricted stock
 
Performance
shares
 
Grant date fair
value of
performance
shares
February 24, 2020 1,322,341
 $5.12
 —
 $—
February 25, 2020 120,491
 $4.94
 —
 $—

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


NOTE 12 – FAIR VALUE MEASUREMENTS
 Three Months Ended March 31,
In thousands2020 2019
Unrealized gain (loss) on equity securities$(8,819) $9,185
Realized gain (loss) on equity securities—
 (8)
Interest rate swap, net—
 (57)
Fair value adjustments, net$(8,819) $9,120

 Three Months Ended June 30,Six Months Ended June 30,
In thousands2020201920202019
Unrealized gain (loss) on equity securities$(2,273) $(5,548) $(11,092) $3,637  
Realized gain (loss) on equity securities12,340  384  12,340  375  
Interest rate swap, net—  (132) —  (188) 
Fair value adjustments, net$10,067  $(5,296) $1,248  $3,824  
Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), secondary priority to quoted prices in inactive markets or observable inputs (Level 2), and the lowest priority to unobservable inputs (Level 3).
18
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, 2020
In thousandsTotal Level 1 Level 2 Level 3  
Assets:       
Equity securities$26,826
 $26,826
 $—
 $—
Other derivative instruments, net1,023
 —
 1,023
 —
 $27,849
 $26,826
 $1,023
 $—
Liabilities:       
Other derivative instruments, net$46
 $—
 $46
 $—

 Fair Value at June 30, 2020
In thousandsTotalLevel 1Level 2Level 3  
Assets:
Equity securities$15,086  $15,086  $—  $—  
Other derivative instruments, net666  —  666  —  
$15,752  $15,086  $666  $—  
Liabilities:
Other derivative instruments, net$—  $—  $—  $—  
 
 Fair Value at December 31, 2019
In thousandsTotalLevel 1Level 2Level 3  
Assets:
Equity and debt securities$35,646  $35,646  $—  $—  
Other derivative instruments, net753  —  753  —  
$36,399  $35,646  $753  $—  
Liabilities:
Silvertip contingent consideration$25,000  $—  $—  $25,000  
Other derivative instruments, net275  —  275  —  
$25,275  $—  $275  $25,000  

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, gold and foreign exchange hedges, and an 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 October 2017, the Company acquired the Silvertip mine from shareholders of JDS Silver Holdings Ltd (the “Silvertip Acquisition”). The consideration for the Silvertip Acquisition included 2 $25.0 million contingent payments, which were payable in cash and common stock upon reaching a future permitting milestone and resource declaration milestone, respectively. The fair value of the Silvertip contingent consideration was 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 iswas classified within Level 3 of the fair value hierarchy. During 2019, the Company paid the $25.0 million due for the permitting milestone in the form of cash and common
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

stock, and in the first quarter of 2020, the Company paid the remaining $25.0 million due for the resource declaration milestone in the form of cash and common stock.
 No assets or liabilities were transferred between fair value levels in the threesix months ended March 31,June 30, 2020.
The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities in the threesix months ended March 31,June 30, 2020:
Six Months Ended June 30,
In thousandsBalance at the beginning of the periodRevaluationSettlementsAccretionBalance at the
end of the
period
Liabilities:
Silvertip contingent consideration$25,000  $—  $(25,000) $—  $—  
 Three Months Ended March 31,
In thousandsBalance at the beginning of the period Revaluation Settlements Accretion Balance at the
end of the
period
Liabilities:         
Silvertip contingent consideration$25,000
 $—
 $(25,000) $—
 $—
The fair value of financial assets and liabilities carried at book value in the financial statements at March 31,June 30, 2020 and December 31, 2019 is presented in the following table:
 March 31, 2020
In thousandsBook Value Fair Value Level 1 Level 2 Level 3  
Liabilities:  
      
2024 Senior Notes(1)
$227,062
 $202,433
 $—
 $202,433
 $—
Revolving Credit Facility(2)
$50,000
 $50,000
 $—
 $50,000
 $—
19

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
 June 30, 2020
In thousandsBook ValueFair ValueLevel 1Level 2Level 3  
Liabilities:
2024 Senior Notes(1)
$227,238  $220,676  $—  $220,676  $—  
Revolving Credit Facility(2)
$60,000  $60,000  $—  $60,000  $—  
(1) Net of unamortized debt issuance costs of $2.9$2.8 million.
(2) Unamortized debt issuance costs of $2.1$1.9 million included in Other Non-Current Assets.
 December 31, 2019
In thousandsBook ValueFair ValueLevel 1Level 2Level 3  
Liabilities:
2024 Senior Notes(1)
$226,885  $228,585  $—  $228,585  $—  
Revolving Credit Facility(2)
$—  $—  $—  $—  $—  

(1) Net of unamortized debt issuance costs of $3.1 million.
(2) Unamortized debt issuance costs of $2.3 million included in Other Non-Current Assets.
The fair value of the 2024 Senior Notes was estimated using quoted market prices. The fair value of the RCF approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.

NOTE 13 – DERIVATIVE FINANCIAL INSTRUMENTS & HEDGING ACTIVITIES

The Company is exposed to various market risks, including the effect of changes in metal prices, foreign currency exchange rates and interest rates, and uses derivatives to manage financial exposures that occur in the normal course of business. The Company does not hold or issue derivatives for trading or speculative purposes.
        
The Company may elect to designate certain derivatives as hedging instruments under U.S. GAAP. The Company formally documents all relationships between designated hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking hedge transactions. This process includes linking all derivatives designated as hedges to either recognized assets or liabilities or forecasted transactions and assessing, both at inception and on an ongoing basis, the effectiveness of the hedging relationships.
Derivatives Not Designated as Hedging Instruments
Provisional Metal Sales
The Company enters into sales contracts with third-party smelters, refiners and off-take customers which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable recorded at the forward price at the time of sale. The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

At March 31,June 30, 2020, the Company had the following derivative instruments that settle as follows:
In thousands except average prices and notional ounces2020 Thereafter
Provisional silver sales contracts$4,500
 $—
Average silver price per ounce$14.86
 $—
Notional ounces302,871
 —
    
Provisional gold sales contracts$8,346
 $—
Average gold price per ounce$1,596
 $—
Notional ounces5,230
 —
    
Provisional zinc sales contracts$11,769
 $—
Average zinc price per pound$0.86
 $—
Notional pounds13,615,188
 —
    
Provisional lead sales contracts$3,028
 $—
Average lead price per pound$0.79
 $—
Notional pounds3,830,017
 —
In thousands except average prices and notional ounces2020Thereafter
Provisional gold sales contracts$26,173 $— 
Average gold price per ounce$1,728 $— 
Notional ounces15,147 — 

The following summarizes the classification of the fair value of the derivative instruments:
 March 31, 2020
In thousandsPrepaid expenses and other Accrued liabilities and other
Provisional metal sales contracts$1,023
 $46
June 30, 2020
In thousandsPrepaid expenses and otherAccrued liabilities and other
Provisional metal sales contracts$666 $— 
 December 31, 2019
In thousandsPrepaid expenses and other Accrued liabilities and other
Provisional metal sales contracts$753
 $275
20

Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
 December 31, 2019
In thousandsPrepaid expenses and otherAccrued liabilities and other
Provisional metal sales contracts$753  $275  
The following represent mark-to-market gains (losses) on derivative instruments in the three and six months ended March 31,June 30, 2020 and 2019, respectively (in thousands):
  Three Months Ended March 31,
Financial statement lineDerivative2020 2019
RevenueProvisional metal sales contracts$500
 $250
Fair value adjustments, netInterest rate swaps—
 (46)
  $500
 $204

 Three Months Ended June 30,Six Months Ended June 30,
Financial statement lineDerivative2020201920202019
RevenueProvisional metal sales contracts$713  $(1,944) $1,213  $(1,694) 
Fair value adjustments, netInterest rate swaps—  (132) —  (188) 
$713  $(2,076) $1,213  $(1,882) 
Derivatives Designated as Cash Flow Hedging Strategies
To protect the Company’s exposure to fluctuations in metal prices the Company entered into Asian (or average value) put and call option contracts in net-zero-cost collar arrangements. The contracts are net cash settled monthly and, if the price of gold at the time of expiration is between the put and call prices, would expire at no cost to the Company. If the price of gold at the time of expiration is lower than the put prices or higher than the call prices, it would result in a realized gain or loss, respectively. The Company has elected to designate these instruments as cash flow hedges of forecasted transactions at their inception.
To protect the Company’s exposure to fluctuations in foreign currency exchange rates for subsidiaries whose functional currency is U.S dollar and are exposed to forecasted transaction denominated in the Mexican Peso and the Canadian Dollar, in March 2020, the Company entered into foreign currency forward exchange contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions.
At March 31,June 30, 2020, the Company had the following derivative cash flow hedge instruments that settle as follows:
Coeur Mining, Inc. and Subsidiaries
In thousands except average prices and notional ounces20202021 and Thereafter
Gold put options
Average gold strike price per ounce$1,457  $1,600  
Notional ounces105,000  202,800  
Gold call options
Average gold strike price per ounce$1,825  $1,892  
Notional ounces105,000  202,800  
Foreign currency forward exchange contracts - Mexican Peso
Average Mexican Peso exchange rate24.22  25.00  
Notional US dollar$30,000  $60,000  
Foreign exchange forward exchange contracts - Canadian Dollar
Average Canadian Dollar exchange rate1.44  —  
Notional US dollar$15,000  $—  
Notes to Condensed Consolidated Financial Statements

In thousands except average prices and notional ounces20202021
Gold put options  
Average gold strike price per ounce$1,447
$1,600
Notional ounces153,000
12,000
   
Gold call options  
Average gold strike price per ounce$1,826
$1,800
Notional ounces153,000
12,000
   
Foreign currency forward exchange contracts - Mexican Peso  
Average Mexican Peso exchange rate24.09
25.00
Notional US dollar$45,000
$60,000
   
Foreign exchange forward exchange contracts - Canadian Dollar  
Average Canadian Dollar exchange rate1.44
—
Notional US dollar$25,000
$—

The effective portions of cash flow hedges are recorded in accumulated other comprehensive income (loss) (“AOCI”) until the hedged item is recognized in earnings. Deferred gains and losses associated with cash flow hedges of metal sales revenue are recognized as a component of net sales in the same period as the related revenue is recognized. Deferred gains and losses associated with cash flow hedges of foreign currency transactions are recognized as a component of costs applicable to sales in the same period the related expenses are incurred.

As of March 31,June 30, 2020, the Company had $0.1$7.7 million of net after-tax gainsloss in AOCI related to gainslosses from cash flow hedge transactions. The Company does not expecttransactions, of which $4.1 million of net after-tax losses is expected to recognize any of these after-tax gainsbe recognized in its consolidated statementCondensed Consolidated Statement of comprehensive incomeComprehensive Income (Loss) during the next 12 months. Actual amounts ultimately reclassified to net income are dependent on the price of gold in effect when derivativefor metal contracts currently outstanding mature.and the Canadian and Mexican exchange rates for foreign currency contracts.
21
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
The following summarizes the classification of the fair value of the derivative instruments designated as cash flow hedges:
 June 30, 2020
In thousandsPrepaid expenses and otherAccrued liabilities and other
Gold zero cost collars$—  $14,485  
Foreign currency forward exchange contracts6,779  —  
$6,779  $14,485  
 March 31, 2020
In thousandsPrepaid expenses and other Accrued liabilities and other
Gold zero cost collars$27
 $—
Foreign currency forward exchange contracts65
 —
 $92
 $—

 December 31, 2019
In thousandsPrepaid expenses and other Accrued liabilities and other
Gold zero cost collars$—
 $136
December 31, 2019
In thousandsPrepaid expenses and otherAccrued liabilities and other
Gold zero cost collars$— $136 
         
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

The following table sets forth the pre-tax gains (losses) on derivatives designated as cash flow hedges that have been included in AOCIAccumulated Other Comprehensive Income (“AOCI”) and the consolidated statementCondensed Consolidated Statement of comprehensive incomeComprehensive Income (Loss) for the three and six months ended March 31, 2020.June 30, 2020 and 2019, respectively (in thousands).
In thousandsDecember 31, 2019 Amount of Gain (Loss) Recognized in Other Comprehensive Income Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings March 31, 2020
Gold zero cost collars$(136) 163
 —
 $27
Foreign currency forward exchange contracts$—
 65
 —
 $65
Derivative contracts designated as cash flow hedges$(136) 228
 —
 $92

 Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
 Amount of Gain (Loss) Recognized in AOCI
Gold zero cost collars$(14,490) $—  $(14,349) $—  
Foreign currency forward exchange contracts7,393  —  7,458  —  
$(7,097) $—  $(6,891) $—  
Amount of (Gain) Loss Reclassified From AOCI to Earnings
Gold zero cost collars$—  $—  $—  $—  
Foreign currency forward exchange contracts(679) —  (679) —  
$(679) $—  $(679) $—  

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

NOTE 14 - OTHER, NET
Other, net consists of the following:
 Three Months Ended March 31,
In thousands2020 2019
Foreign exchange gain (loss)$(76) $(665)
Gain (loss) on sale of assets and investments9
 52
Gain (loss) on sale of Manquiri NSR consideration(1)
365
 —
Gain (loss) on Silvertip contingent consideration955
 —
Interest income on notes receivable—
 180
Other628
 493
Other, net$1,881
 $60

 Three Months Ended June 30,Six Months Ended June 30,
In thousands2020201920202019
Foreign exchange gain (loss)$10  $(468) $(66) $(1,133) 
Gain (loss) on sale of assets and investments9  (72) 18  (20) 
Gain (loss) on sale of Manquiri NSR consideration(1)
—  —  365  —  
Gain (loss) on Silvertip contingent consideration—  —  955  —  
Interest income on notes receivable—  18  —  199  
Other102  1,165  730  1,657  
Other, net$121  $643  $2,002  $703  
(1) As defined in Note 18 -- Discontinued Operations.
22
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
NOTE 15 – NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of the Company’s common sharesstock outstanding during the period. Diluted net income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock.
For the three and six months ended March 31,June 30, 2020, and 2019, there were 1,712,0331,816,332 and 2,593,2943,205,676 common stock equivalents, respectively, related to equity-based awards were not included in the diluted earnings per share calculation as the shares would be antidilutive. Similarly, 3,241,533 common stock equivalents were excluded in the diluted earnings per share calculation for the three and six months ended June 30, 2019, respectively.
Coeur Mining, Inc. and Subsidiaries
Three months ended June 30,Six months ended June 30,
In thousands except per share amounts2020201920202019
Net income (loss) available to common stockholders:
Income (loss) from continuing operations$(1,209) $(36,764) $(13,109) $(61,658) 
Income (loss) from discontinued operations—  —  —  5,693  
$(1,209) $(36,764) $(13,109) $(55,965) 
Weighted average shares:
Basic240,945  207,809  240,600  205,103  
Effect of stock-based compensation plans—  —  —  —  
Diluted240,945  207,809  240,600  205,103  
Basic income (loss) per share:
Income (loss) from continuing operations$(0.01) $(0.18) $(0.05) $(0.30) 
Income (loss) from discontinued operations—  —  —  0.03  
Basic(1)
$(0.01) $(0.18) $(0.05) $(0.27) 
Diluted income (loss) per share:
Income (loss) from continuing operations$(0.01) $(0.18) $(0.05) $(0.30) 
Income (loss) from discontinued operations—  —  —  0.03  
Diluted(1)
$(0.01) $(0.18) $(0.05) $(0.27) 
Notes to Condensed Consolidated Financial Statements

 Three months ended March 31,
In thousands except per share amounts2020 2019
Net income (loss) available to common stockholders:   
Income (loss) from continuing operations$(11,900) $(24,894)
Income (loss) from discontinued operations—
 5,693
 $(11,900) $(19,201)
    
Weighted average shares:   
Basic240,255
 202,422
Effect of stock-based compensation plans—
 —
Diluted240,255

202,422
    
Basic income (loss) per share:   
Income (loss) from continuing operations$(0.05) $(0.12)
Income (loss) from discontinued operations0.00
 0.03
Basic(1)
$(0.05)
$(0.09)
    
Diluted income (loss) per share:   
Income (loss) from continuing operations$(0.05) $(0.12)
Income (loss) from discontinued operations0.00
 0.03
Diluted(1)
$(0.05)
$(0.09)

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

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



NOTE 16 - 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, Coeur Capital, Inc., Coeur Sterling, Inc., Sterling Intermediate Holdco, Inc., and Coeur Sterling Holdings LLC (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.
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements23

CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2020
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
ASSETS       
CURRENT ASSETS         
Cash and cash equivalents$7,594
 $16,832
 $28,469
 $—
 $52,895
Receivables—
 7,014
 12,708
 —
 19,722
Ore on leach pads—
 83,035
 —
 —
 83,035
Inventory—
 24,729
 27,128
 —
 51,857
Prepaid expenses and other6,649
 1,080
 6,421
 —
 14,150
 14,243
 132,690
 74,726
 —
 221,659
NON-CURRENT ASSETS         
Property, plant and equipment, net2,176
 160,632
 79,210
 —
 242,018
Mining properties, net—
 327,587
 375,373
 —
 702,960
Ore on leach pads—
 66,703
 —
 —
 66,703
Restricted assets1,468
 206
 6,449
 —
 8,123
Equity and debt securities26,826
 —
 —
 —
 26,826
Receivables—
 —
 23,149
 —
 23,149
Net investment in subsidiaries403,171
 82,558
 (82,713) (403,016) —
Other243,008
 50,552
 2,622
 (238,523) 57,659
TOTAL ASSETS$690,892
 $820,928
 $478,816
 $(641,539) $1,349,097
          
LIABILITIES AND STOCKHOLDERS’ EQUITY         
CURRENT LIABILITIES         
Accounts payable$2,070
 $26,138
 $33,311
 $—
 $61,519
Other accrued liabilities9,327
 27,031
 13,577
 —
 49,935
Debt—
 15,469
 8,119
 —
 23,588
Reclamation—
 1,628
 1,466
 —
 3,094
 11,397
 70,266
 56,473
 —
 138,136
NON-CURRENT LIABILITIES         
Debt277,062
 32,596
 248,386
 (238,523) 319,521
Reclamation—
 92,665
 42,771
 —
 135,436
Deferred tax liabilities366
 8,190
 27,916
 —
 36,472
Other long-term liabilities3,826
 37,117
 17,945
 —
 58,888
Intercompany payable (receivable)(262,403) 244,608
 17,795
 —
 —
 18,851
 415,176
 354,813
 (238,523) 550,317
STOCKHOLDERS’ EQUITY         
Common stock2,436
 20,401
 214,816
 (235,217) 2,436
Additional paid-in capital3,603,785
 338,479
 2,018,080
 (2,356,559) 3,603,785
Accumulated deficit(2,945,647) (23,394) (2,165,366) 2,188,760
 (2,945,647)
Accumulated other comprehensive income (loss)70
 —
 —
 —
 70
 660,644
 335,486
 67,530
 (403,016) 660,644
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$690,892
 $820,928
 $478,816
 $(641,539) $1,349,097

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

CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2019JUNE 30, 2020
In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents$23,317  $21,918  $25,689  $—  $70,924  
Receivables678  5,890  15,418  —  21,986  
Ore on leach pads—  75,111  —  —  75,111  
Inventory—  26,983  25,769  —  52,752  
Prepaid expenses and other11,573  1,365  5,792  —  18,730  
35,568  131,267  72,668  —  239,503  
NON-CURRENT ASSETS
Property, plant and equipment, net2,146  153,331  78,656  —  234,133  
Mining properties, net(671) 331,753  373,498  —  704,580  
Ore on leach pads—  78,605  —  —  78,605  
Restricted assets1,477  206  6,953  —  8,636  
Equity and debt securities15,086  —  —  —  15,086  
Receivables—  —  22,978  —  22,978  
Net investment in subsidiaries422,836  78,543  (77,812) (423,567) —  
Other249,101  50,862  2,547  (244,951) 57,559  
TOTAL ASSETS$725,543  $824,567  $479,488  $(668,518) $1,361,080  
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable$2,959  $34,835  $20,447  $—  $58,241  
Other accrued liabilities21,903  37,463  9,091  —  68,457  
Debt—  16,962  10,214  —  27,176  
Reclamation—  1,628  1,466  —  3,094  
24,862  90,888  41,218  —  156,968  
NON-CURRENT LIABILITIES
Debt287,239  31,443  247,712  (244,951) 321,443  
Reclamation—  94,076  43,639  —  137,715  
Deferred tax liabilities(2,914) 8,190  29,990  —  35,266  
Other long-term liabilities3,655  34,046  18,130  —  55,831  
Intercompany payable (receivable)(241,156) 222,303  18,853  —  —  
46,824  390,058  358,324  (244,951) 550,255  
STOCKHOLDERS’ EQUITY
Common stock2,437  20,401  214,816  (235,217) 2,437  
Additional paid-in capital3,605,982  340,700  2,040,931  (2,381,631) 3,605,982  
Accumulated deficit(2,946,856) (17,480) (2,175,801) 2,193,281  (2,946,856) 
Accumulated other comprehensive income (loss)(7,706) —  —  —  (7,706) 
653,857  343,621  79,946  (423,567) 653,857  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$725,543  $824,567  $479,488  $(668,518) $1,361,080  
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
ASSETS       
CURRENT ASSETS         
Cash and cash equivalents$2,985
 $27,217
 $25,443
 $—
 $55,645
Receivables(65) 5,978
 12,753
 —
 18,666
Ore on leach pads—
 66,192
 —
 —
 66,192
Inventory—
 24,763
 31,123
 —
 55,886
Prepaid expenses and other6,202
 1,192
 6,653
 —
 14,047
 9,122
 125,342
 75,972
 —
 210,436
NON-CURRENT ASSETS         
Property, plant and equipment, net2,370
 167,159
 79,260
 —
 248,789
Mining properties, net4,452
 327,685
 379,818
 —
 711,955
Ore on leach pads—
 71,539
 —
 —
 71,539
Restricted assets1,470
 206
 7,076
 —
 8,752
Equity and debt securities35,646
 —
 —
 —
 35,646
Receivables—
 —
 28,709
 —
 28,709
Net investment in subsidiaries325,723
 85,755
 (85,740) (325,738) —
Other267,281
 52,040
 20,937
 (277,448) 62,810
TOTAL ASSETS$646,064
 $829,726
 $506,032
 $(603,186) $1,378,636
          
LIABILITIES AND STOCKHOLDERS’ EQUITY         
CURRENT LIABILITIES         
Accounts payable$1,277
 $26,211
 $41,688
 $—
 $69,176
Other accrued liabilities9,036
 35,547
 51,033
 —
 95,616
Debt—
 15,347
 7,399
 —
 22,746
Reclamation—
 1,628
 1,486
 —
 3,114
 10,313
 78,733
 101,606
 —
 190,652
NON-CURRENT LIABILITIES         
Debt226,885
 32,989
 290,325
 (277,448) 272,751
Reclamation—
 91,524
 41,893
 —
 133,417
Deferred tax liabilities50
 8,104
 33,822
 —
 41,976
Other long-term liabilities4,225
 40,012
 28,599
 —
 72,836
Intercompany payable (receivable)(262,413) 246,186
 16,227
 —
 —
 (31,253) 418,815
 410,866
 (277,448) 520,980
STOCKHOLDERS’ EQUITY         
Common stock2,415
 20,309
 215,792
 (236,101) 2,415
Additional paid-in capital3,598,472
 337,975
 1,960,187
 (2,298,162) 3,598,472
Accumulated deficit(2,933,747) (26,106) (2,182,419) 2,208,525
 (2,933,747)
Accumulated other comprehensive income (loss)(136) —
 —
 —
 (136)
 667,004
 332,178
 (6,440) (325,738) 667,004
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$646,064
 $829,726
 $506,032
 $(603,186) $1,378,636


24














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

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)BALANCE SHEET
THREE MONTHS ENDED MARCHDECEMBER 31, 20202019
In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents$2,985  $27,217  $25,443  $—  $55,645  
Receivables(65) 5,978  12,753  —  18,666  
Ore on leach pads—  66,192  —  —  66,192  
Inventory—  24,763  31,123  —  55,886  
Prepaid expenses and other6,202  1,192  6,653  —  14,047  
9,122  125,342  75,972  —  210,436  
NON-CURRENT ASSETS
Property, plant and equipment, net2,370  167,159  79,260  —  248,789  
Mining properties, net4,452  327,685  379,818  —  711,955  
Ore on leach pads—  71,539  —  —  71,539  
Restricted assets1,470  206  7,076  —  8,752  
Equity and debt securities35,646  —  —  —  35,646  
Receivables—  —  28,709  —  28,709  
Net investment in subsidiaries325,723  85,755  (85,740) (325,738) —  
Other267,281  52,040  20,937  (277,448) 62,810  
TOTAL ASSETS$646,064  $829,726  $506,032  $(603,186) $1,378,636  
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable$1,277  $26,211  $41,688  $—  $69,176  
Other accrued liabilities9,036  35,547  51,033  —  95,616  
Debt—  15,347  7,399  —  22,746  
Reclamation—  1,628  1,486  —  3,114  
10,313  78,733  101,606  —  190,652  
NON-CURRENT LIABILITIES
Debt226,885  32,989  290,325  (277,448) 272,751  
Reclamation—  91,524  41,893  —  133,417  
Deferred tax liabilities50  8,104  33,822  —  41,976  
Other long-term liabilities4,225  40,012  28,599  —  72,836  
Intercompany payable (receivable)(262,413) 246,186  16,227  —  —  
(31,253) 418,815  410,866  (277,448) 520,980  
STOCKHOLDERS’ EQUITY
Common stock2,415  20,309  215,792  (236,101) 2,415  
Additional paid-in capital3,598,472  337,975  1,960,187  (2,298,162) 3,598,472  
Accumulated deficit(2,933,747) (26,106) (2,182,419) 2,208,525  (2,933,747) 
Accumulated other comprehensive income (loss)(136) —  —  —  (136) 
667,004  332,178  (6,440) (325,738) 667,004  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$646,064  $829,726  $506,032  $(603,186) $1,378,636  







25
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
Revenue$—
 $96,944
 $76,223
 $—
 $173,167
COSTS AND EXPENSES         
Costs applicable to sales(1)
—
 65,286
 53,631
 —
 118,917
Amortization215
 17,415
 18,532
 —
 36,162
General and administrative8,910
 2
 8
 —
 8,920
Exploration280
 4,363
 1,743
 —
 6,386
Pre-development, reclamation, and other18
 2,616
 3,921
 —
 6,555
Total costs and expenses9,423
 89,682
 77,835
 —
 176,940
OTHER INCOME (EXPENSE), NET         
Fair value adjustments, net(8,819) —
 —
 —
 (8,819)
Other, net4,615
 (9) 1,002
 (3,727) 1,881
Interest expense, net of capitalized interest(4,105) (736) (4,014) 3,727
 (5,128)
Total other income (expense), net(8,309) (745) (3,012) —
 (12,066)
Income (loss) from continuing operations before income and mining taxes(17,732) 6,517
 (4,624) —
 (15,839)
Income and mining tax (expense) benefit(218) (518) 4,675
 —
 3,939
Income (loss) from continuing operations(17,950) 5,999
 51
 —
 (11,900)
Equity income (loss) in consolidated subsidiaries6,050
 (3,157) 3,027
 (5,920) —
Income (loss) from discontinued operations—
 —
 —
 —
 —
NET INCOME (LOSS)$(11,900) $2,842
 $3,078
 $(5,920) $(11,900)
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:         
Unrealized gain (loss) on debt and equity securities—
 —
 —
 —
 —
Unrealized gain (loss) on cash flow hedges, net of tax of $22 for the three months ended March 31, 2020206
 —
 —
 —
 206
COMPREHENSIVE INCOME (LOSS)$(11,694) $2,842
 $3,078
 $(5,920) $(11,694)




























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


CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
THREE MONTHS ENDED MARCH 31, 2019JUNE 30, 2020
In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Revenue$—  $116,280  $37,969  $—  $154,249  
COSTS AND EXPENSES
Costs applicable to sales(1)
—  71,190  18,825  —  90,015  
Amortization187  19,188  8,501�� —  27,876  
General and administrative8,612  —  4  —  8,616  
Exploration430  7,617  3,808  —  11,855  
Pre-development, reclamation, and other104  5,358  13,213  —  18,675  
Total costs and expenses9,333  103,353  44,351  —  157,037  
OTHER INCOME (EXPENSE), NET
Loss on debt extinguishment—  —  —  —  —  
Fair value adjustments, net10,067  —  —  —  10,067  
Other, net3,923  (89) (85) (3,628) 121  
Interest expense, net of capitalized interest(4,670) (733) (3,990) 3,628  (5,765) 
Total other income (expense), net9,320  (822) (4,075) —  4,423  
Income (loss) from continuing operations before income and mining taxes(13) 12,105  (10,457) —  1,635  
Income and mining tax (expense) benefit3,256  (2,175) (3,925) —  (2,844) 
Income (loss) from continuing operations3,243  9,930  (14,382) —  (1,209) 
Equity income (loss) in consolidated subsidiaries(4,452) (4,018) 3,948  4,522  —  
Income (loss) from discontinued operations$—  $—  $—  $—  $—  
NET INCOME (LOSS)$(1,209) $5,912  $(10,434) $4,522  $(1,209) 
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative contracts designated as cash flow hedges(7,776) —  —  —  (7,776) 
Other comprehensive income (loss)(7,776) —  —  —  (7,776) 
COMPREHENSIVE INCOME (LOSS)$(8,985) $5,912  $(10,434) $4,522  $(8,985) 
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
Revenue$—
 $90,699
 $64,171
 $—
 $154,870
COSTS AND EXPENSES         
Costs applicable to sales(1)
—
 72,022
 59,628
 —
 131,650
Amortization221
 18,445
 23,210
 —
 41,876
General and administrative9,474
 —
 —
 —
 9,474
Exploration336
 1,124
 2,254
 —
 3,714
Pre-development, reclamation, and other160
 1,943
 2,331
 —
 4,434
Total costs and expenses10,191
 93,534
 87,423
 —
 191,148
OTHER INCOME (EXPENSE), NET         
Fair value adjustments, net9,120
 —
 —
 —
 9,120
Other, net4,998
 165
 (800) (4,303) 60
Interest expense, net of capitalized interest(5,729) (392) (4,636) 4,303
 (6,454)
Total other income (expense), net8,389
 (227) (5,436) —
 2,726
Income (loss) from continuing operations before income and mining taxes(1,802) (3,062) (28,688) —
 (33,552)
Income and mining tax (expense) benefit(2,077) (32) 10,767
 —
 8,658
Income (loss) from continuing operations(3,879) (3,094) (17,921) —
 (24,894)
Equity income (loss) in consolidated subsidiaries(21,015) (418) 283
 21,150
 —
Income (loss) from discontinued operations5,693
 —
 —
 —
 5,693
NET INCOME (LOSS)$(19,201) $(3,512) $(17,638) $21,150
 $(19,201)
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:         
Unrealized gain (loss) on debt securities, net of tax59
 —
 —
 —
 59
COMPREHENSIVE INCOME (LOSS)$(19,142) $(3,512) $(17,638) $21,150
 $(19,142)









26


























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

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWSCOMPREHENSIVE INCOME (LOSS)
THREE MONTHS ENDED MARCH 31, 2020JUNE 30, 2019
In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Revenue$—  $90,854  $71,269  $—  $162,123  
COSTS AND EXPENSES
Costs applicable to sales(1)
—  69,291  62,657  —  131,948  
Amortization219  18,726  24,259  —  43,204  
General and administrative5,982  570  1,198  —  7,750  
Exploration350  2,085  3,284  —  5,719  
Pre-development, reclamation, and other80  1,989  2,265  —  4,334  
Total costs and expenses6,631  92,661  93,663  —  192,955  
OTHER INCOME (EXPENSE), NET
Fair value adjustments, net(5,288) (8) —  —  (5,296) 
Other, net5,093  273  (413) (4,310) 643  
Interest expense, net of capitalized interest(5,815) (508) (4,812) 4,310  (6,825) 
Total other income (expense), net(6,010) (243) (5,225) —  (11,478) 
Income (loss) from continuing operations before income and mining taxes(12,641) (2,050) (27,619) —  (42,310) 
Income and mining tax (expense) benefit(311) (1,116) 6,973  —  5,546  
Income (loss) from continuing operations(12,952) (3,166) (20,646) —  (36,764) 
Equity income (loss) in consolidated subsidiaries(23,814) (212) (23) 24,049  —  
Income (loss) from discontinued operations$—  $—  $—  $—  $—  
NET INCOME (LOSS)$(36,766) $(3,378) $(20,669) $24,049  $(36,764) 
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Other comprehensive income (loss)—  —  —  —  —  
COMPREHENSIVE INCOME (LOSS)$(36,766) $(3,378) $(20,669) $24,049  $(36,764) 
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:         
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES$(3,457) $2,231
 $(845) $(5,920) $(7,991)
          
CASH FLOWS FROM INVESTING ACTIVITIES         
Capital expenditures(21) (10,491) (11,696) —
 (22,208)
Proceeds from the sale of assets4,500
 6
 —
 —
 4,506
Other—
 —
 (17) —
 (17)
Investments in consolidated subsidiaries(6,050) (39) 169
 5,920
 —
Cash provided by (used in) activities of continuing operations(1,571) (10,524) (11,544) 5,920
 (17,719)
Cash provided by (used in) activities of discontinued operations—
 —
 —
 —
 —
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES(1,571) (10,524) (11,544) 5,920
 (17,719)
CASH FLOWS FROM FINANCING ACTIVITIES:         
Issuance of notes and bank borrowings, net of issuance costs50,000
 —
 —
 —
 50,000
Payments on debt, capital leases, and associated costs—
 (3,975) (1,926) —
 (5,901)
Silvertip contingent consideration—
 —
 (18,750) —
 (18,750)
Net intercompany financing activity(38,600) 1,857
 36,743
 —
 —
Other(1,973) —
 —
 —
 (1,973)
Cash provided by (used in) activities of continuing operations9,427
 (2,118) 16,067
 —
 23,376
Cash provided by (used in) activities of discontinued operations—
 —
 —
 —
 —
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES9,427
 (2,118) 16,067
 —
 23,376
Effect of exchange rate changes on cash and cash equivalents—
 (27) (599) —
 (626)
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH4,399
 (10,438) 3,079
 —
 (2,960)
Cash, cash equivalents and restricted cash at beginning of period6,675
 27,238
 23,105
 —
 57,018
Cash, cash equivalents and restricted cash at end of period$11,074
 $16,800
 $26,184
 $—
 $54,058








27























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

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2019JUNE 30, 2020
In thousandsCoeur Mining, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:         
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES(34,395) 8,468
 (11,069) 21,150
 (15,846)
          
CASH FLOWS FROM INVESTING ACTIVITIES         
Capital expenditures(38) (14,431) (12,969) —
 (27,438)
Proceeds from the sale of assets—
 753
 94
 —
 847
Sales of investments5,168
 —
 —
 —
 5,168
Other1,803
 —
 (62) —
 1,741
Investments in consolidated subsidiaries21,015
 —
 135
 (21,150) —
Cash provided by (used in) activities of continuing operations23,948
 (13,678) (12,802) (21,150) (19,682)
Cash provided by (used in) activities of discontinued operations—
 —
 —
 —
 —
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES23,948
 (13,678) (12,802) (21,150) (19,682)
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(15,000) (4,387) (2,969) —
 (22,356)
Net intercompany financing activity10,226
 (5,357) (4,869) —
 —
Other(3,364) —
 —
 —
 (3,364)
Cash provided by (used in) activities of continuing operations6,862
 (9,744) (7,838) —
 (10,720)
Cash provided by (used in) activities of discontinued operations—
 —
 —
 —
 —
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES6,862
 (9,744) (7,838) —
 (10,720)
Effect of exchange rate changes on cash and cash equivalents—
 3
 198
 —
 201
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH415
 (14,951) (31,511) —
 (46,047)
Cash, cash equivalents and restricted cash at beginning of period12,747
 25,532
 79,790
 —
 118,069
Cash, cash equivalents and restricted cash at end of period$13,162
 $10,581
 $48,279
 $—
 $72,022


In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash provided by (used in) activities of operations(14,684) 38,128  (18,019) 4,522  9,947  
Cash provided by (used in) activities of operations—  —  —  —  —  
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES(14,684) 38,128  (18,019) 4,522  9,947  
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(156) (10,044) (6,482) —  (16,682) 
Proceeds from the sale of assets—  9  —  —  9  
Sales of investments19,802  —  —  —  19,802  
Other—  —  (183) —  (183) 
Investments in consolidated subsidiaries4,452  1  69  (4,522) —  
Cash provided by (used in) activities of operations24,098  (10,034) (6,596) (4,522) 2,946  
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES24,098  (10,034) (6,596) (4,522) 2,946  
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of notes and bank borrowings, net of issuance costs100,000  —  —  —  100,000  
Payments on debt, capital leases, and associated costs(90,000) (3,674) (2,039) —  (95,713) 
Silvertip Contingent Consideration—  —  —  —  —  
Net intercompany financing activity(3,616) (19,328) 122,944  —  —  
Other141  —  —  —  141  
Cash provided by (used in) activities of operations6,525  (23,002) 20,905  —  4,428  
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES6,525  (23,002) 20,905  —  4,428  
Effect of exchange rate changes on cash and cash equivalents3  (8) 934  —  929  
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH15,942  5,084  (2,776) —  18,250  
Cash, cash equivalents and restricted cash at beginning of period11,074  16,800  26,184  —  54,058  
Cash, cash equivalents and restricted cash at end of period$27,016  $21,884  $23,408  $—  $72,308  









28














Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
THREE MONTHS ENDED JUNE 30, 2019
In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash provided by (used in) activities of continuing operations(43,768) 43,095  3,059  24,049  26,435  
Cash provided by (used in) activities of discontinued operations—  —  —  —  —  
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES(43,768) 43,095  3,059  24,049  26,435  
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(72) (7,820) (12,857) —  (20,749) 
Proceeds from the sale of assets—  57  —  —  57  
Sales of investments1,102  —  —  —  1,102  
Proceeds from notes receivable2,000  —  —  —  2,000  
Other230  113  (66) —  277  
Investments in consolidated subsidiaries23,725  85  239  (24,049) —  
Cash provided by (used in) activities of continuing operations26,985  (7,565) (12,684) (24,049) (17,313) 
Cash provided by (used in) activities of discontinued operations—  —  —  —  —  
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES26,985  (7,565) (12,684) (24,049) (17,313) 
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock48,887  —  —  —  48,887  
Payments on debt, capital leases, and associated costs(82,702) (5,753) (2,357) —  (90,812) 
Net intercompany financing activity41,479  (30,949) (10,530) —  —  
Other—  —  —  —  —  
Cash provided by (used in) activities of continuing operations7,664  (36,702) (12,887) —  (41,925) 
Cash provided by (used in) activities of discontinued operations—  —  —  —  —  
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES7,664  (36,702) (12,887) —  (41,925) 
Effect of exchange rate changes on cash and cash equivalents—  (1) 57  —  56  
Less net cash provided by (used in) discontinued operations—  —  —  —  —  
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(9,119) (1,173) (22,455) —  (32,747) 
Cash, cash equivalents and restricted cash at beginning of period13,162  10,581  48,279  —  72,022  
Cash, cash equivalents and restricted cash at end of period$4,043  $9,408  $25,824  $—  $39,275  

29
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
SIX MONTHS ENDED JUNE 30, 2020
In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Revenue$—  $213,224  $114,192  $—  $327,416  
COSTS AND EXPENSES
Costs applicable to sales(1)
—  136,476  72,456  —  208,932  
Amortization402  36,603  27,033  —  64,038  
General and administrative17,522  2  12  —  17,536  
Exploration710  11,980  5,551  —  18,241  
Pre-development, reclamation, and other122  7,974  17,134  —  25,230  
Total costs and expenses18,756  193,035  122,186  —  333,977  
OPERATING LOSS(18,756) 20,189  (7,994) —  (6,561) 
OTHER INCOME (EXPENSE), NET
Fair value adjustments, net1,248  —  —  —  1,248  
Other, net8,538  (98) 917  (7,355) 2,002  
Interest expense, net of capitalized interest(8,775) (1,469) (8,004) 7,355  (10,893) 
Total other income (expense), net1,011  (1,567) (7,087) —  (7,643) 
Income (loss) from continuing operations before income and mining taxes(17,745) 18,622  (15,081) —  (14,204) 
Income and mining tax (expense) benefit3,038  (2,693) 750  —  1,095  
Income (loss) from continuing operations(14,707) 15,929  (14,331) —  (13,109) 
Equity income (loss) in consolidated subsidiaries1,598  (7,175) 6,975  (1,398) —  
Income (loss) from discontinued operations—  —  —  —  —  
NET INCOME (LOSS)$(13,109) $8,754  $(7,356) $(1,398) $(13,109) 
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative contracts designated as cash flow hedges(7,570) —  —  —  (7,570) 
Other comprehensive income (loss)(7,570) —  —  —  (7,570) 
COMPREHENSIVE INCOME (LOSS)$(20,679) $8,754  $(7,356) $(1,398) $(20,679) 

30
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)
SIX MONTHS ENDED JUNE 30, 2019
In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
Revenue$—  $181,553  $135,440  $—  $316,993  
COSTS AND EXPENSES
Costs applicable to sales(1)
—  141,313  122,285  —  263,598  
Amortization440  37,171  47,469  —  85,080  
General and administrative15,456  570  1,198  —  17,224  
Exploration686  3,209  5,538  —  9,433  
Pre-development, reclamation, and other240  3,932  4,596  —  8,768  
Total costs and expenses16,822  186,195  181,086  —  384,103  
OTHER INCOME (EXPENSE), NET
Fair value adjustments, net3,832  (8) —  —  3,824  
Other, net10,091  438  (1,213) (8,613) 703  
Interest expense, net of capitalized interest(11,544) (900) (9,448) 8,613  (13,279) 
Total other income (expense), net2,379  (470) (10,661) —  (8,752) 
Income (loss) from continuing operations before income and mining taxes(14,443) (5,112) (56,307) —  (75,862) 
Income and mining tax (expense) benefit(2,388) (1,148) 17,740  —  14,204  
Income (loss) from continuing operations(16,831) (6,260) (38,567) —  (61,658) 
Equity income (loss) in consolidated subsidiaries(44,829) (630) 260  45,199  —  
Income (loss) from discontinued operations$5,693  $—  $—  $—  $5,693  
NET INCOME (LOSS)$(55,967) $(6,890) $(38,307) $45,199  $(55,965) 
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Unrealized gain (loss) on debt securities, net of tax59  —  —  —  59  
Other comprehensive income (loss)59  —  —  —  59  
COMPREHENSIVE INCOME (LOSS)$(55,908) $(6,890) $(38,307) $45,199  $(55,906) 

31
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2020
In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash provided by (used in) activities of operations$(18,141) $40,359  $(18,864) $(1,398) $1,956  
Cash provided by (used in) activities of discontinued operations—  —  —  —  —  
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES$(18,141) $40,359  $(18,864) $(1,398) $1,956  
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(177) (20,535) (18,178) —  (38,890) 
Proceeds from the sale of assets4,500  15  —  —  4,515  
Sales of investments19,802  —  —  —  19,802  
Other—  —  (200) —  (200) 
Investments in consolidated subsidiaries(1,598) (38) 238  1,398  —  
Cash provided by (used in) activities of continuing operations22,527  (20,558) (18,140) 1,398  (14,773) 
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES22,527  (20,558) (18,140) 1,398  (14,773) 
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of notes and bank borrowings, net of issuance costs150,000  —  —  —  150,000  
Payments on debt, capital leases, and associated costs(90,000) (7,649) (3,965) —  (101,614) 
Silvertip contingent consideration—  —  (18,750) —  (18,750) 
Net intercompany financing activity(42,216) (17,471) 59,687  —  —  
Other(1,832) —  —  —  (1,832) 
Cash provided by (used in) activities of operations15,952  (25,120) 36,972  —  27,804  
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES15,952  (25,120) 36,972  —  27,804  
Effect of exchange rate changes on cash and cash equivalents3  (35) 335  —  303  
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH20,341  (5,354) 303  —  15,290  
Cash, cash equivalents and restricted cash at beginning of period6,675  27,238  23,105  —  57,018  
Cash, cash equivalents and restricted cash at end of period$27,016  $21,884  $23,408  $—  $72,308  

32
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2019
In thousandsCoeur Mining, Inc.Guarantor SubsidiariesNon-Guarantor SubsidiariesEliminationsConsolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash provided by (used in) activities of continuing operations(78,163) 51,563  (8,010) 45,199  10,589  
Cash provided by (used in) activities of discontinued operations—  —  —  —  —  
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES(78,163) 51,563  (8,010) 45,199  10,589  
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures(110) (22,251) (25,826) —  (48,187) 
Proceeds from the sale of assets—  810  94  —  904  
Purchase of investments—  —  —  —  —  
Sales of investments1,102  —  —  —  1,102  
Proceeds from notes receivable7,168  —  —  —  7,168  
Other2,032  113  (127) —  2,018  
Investments in consolidated subsidiaries44,740  85  374  (45,199) —  
Cash provided by (used in) activities of continuing operations54,932  (21,243) (25,485) (45,199) (36,995) 
Cash provided by (used in) activities of discontinued operations—  —  —  —  —  
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES54,932  (21,243) (25,485) (45,199) (36,995) 
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock48,887  —  —  —  48,887  
Issuance of notes and bank borrowings, net of issuance costs15,000  —  —  —  15,000  
Payments on debt, capital leases, and associated costs(97,807) (10,140) (5,326) —  (113,273) 
Net intercompany financing activity51,705  (36,306) (15,399) —  —  
Other(3,259) —  —  —  (3,259) 
Cash provided by (used in) activities of continuing operations14,526  (46,446) (20,725) —  (52,645) 
Cash provided by (used in) activities of discontinued operations—  —  —  —  —  
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES14,526  (46,446) (20,725) —  (52,645) 
Effect of exchange rate changes on cash and cash equivalents—  2  255  —  257  
Less net cash provided by (used in) discontinued operations—  —  —  —  —  
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(8,705) (16,124) (53,965) —  (78,794) 
Cash, cash equivalents and restricted cash at beginning of period12,748  25,532  79,789  —  118,069  
Cash, cash equivalents and restricted cash at end of period$4,043  $9,408  $25,824  $—  $39,275  





















33
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
NOTE 17 – 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 certain properties acquired in 2015) to a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) under a gold stream agreement for the lesser of $800 or spot price per ounce. In 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 Mexicana has satisfied its contractual obligation to repay the deposit to Franco-Nevada, the deposit is accounted for as deferred revenue and is recognized as revenue on a units of production basis as ounces are sold to Franco-Nevada. At March 31,June 30, 2020 the remaining unamortized balance was $10.5$10.4 million, which is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet.
Kensington Prepayment
In June 2019, Coeur entered into a transaction with an existing metal sales counterparty whereby it amended its existing sales and purchase contract for gold concentrate from its Kensington mine (the “Amended Sales Contract”) to allow for a $25.0 million prepayment for deliveries of gold concentrate from the Kensington mine, for which was repaiddeliveries were made to the counterparty in 2019. The Amended Sales Contract also includes an option to allow for an additional $15.0 million prepayment for deliveries of gold concentrate, which Coeur exercised in December 2019. In the first quarterhalf of 2020, the Kensington mine delivered approximately $7.0$15.0 million of gold concentrate to the counterparty.counterparty in satisfaction of this prepayment obligation. The Amended Sales Contract was further amended in June 2020 to include options for Coeur to receive up to two additional prepayments of up to $15.0 million each for deliveries of gold concentrate from the Kensington mine, and Coeur exercised the option to receive the first $15.0 million prepayment in June 2020 (the “June 2020 Prepayment”). The remaining deliveries of $8.0$15.0 million under the June 2020 Prepayment are recognized as a deferred revenue liability and are presented in Accrued liabilities and other on the Consolidated Balance Sheet. Under the relevant terms of the Amended Sales Contract, Coeur maintains its exposure to the price of gold and expects to recognize the remaining value of the accrued liability by June 30,December 31, 2020.
Silvertip Contingent Consideration
A total of up to $50.0 million of contingent consideration, payable in cash and common stock, was payable in conjunction with the Silvertip Acquisition based upon the achievement of 2 milestones, one of which was achieved and paid during 2019 and the other of which was achieved and paid during the first quarter of 2020. The first milestone payment of $25.0 million was contingent upon receipt of a permit expansion for a sustained mining and milling rate of 1,000 tonnes per day (the “Permit contingent consideration”). The permit application was submitted to the British Columbia Ministry of Energy and Mining on April 30, 2018 and following its approval in November 2019, the Company made a payment of $25.0 million in the form of $18.7 million in cash and 1.0 million shares of common stock to satisfy the Permit contingent consideration obligation. At December 31, 2019, based on the Silvertip mine’s total mineralized material (including reserves) (the “Resource contingent consideration”), the former JDS Silver Holdings Ltd. shareholders were entitled to the full second contingent payment of $25.0 million. In the first quarter of 2020, the Company made a payment of $25.0 million in the form of $18.8 million in cash and 0.9 million shares of common stock to satisfy the Resource contingent consideration obligation.
Mexico VAT Litigation
Included in non-current receivables as of March 31,June 30, 2020 are $22.4$23.0 million due from the Mexican government associated with VAT that was paid under Coeur Mexicana’s prior royalty agreement with a subsidiary of Franco-Nevada Corporation, which was terminated in 2016. Under the royalty agreement, Coeur applied for and initially received VAT refunds associated with the royalty payments in the normal course; however, in 2011 the Mexican tax authorities began denying the Company’s VAT refunds based on the argument that VAT was not legally due on the royalty payments. Accordingly, Coeur began to request refunds of the VAT as undue payments, which the Mexican tax authorities also denied. The Company has since been engaged in ongoing efforts to recover the VAT from the Mexican government (including through litigation). Despite a favorable ruling from Mexican tax courts in this matter in 2018, litigation continues, some of which was determined unfavorably to the Company in 2019 and 2020 based on interpretations of applicable law and prior court decisions which the Company and its counsel believe are erroneous and which are now under appeal. While the Company believes that it remains legally entitled to be refunded the full amount of the VAT receivable, the Company may continue to experience delays or obstacles in the recovery of VAT and it is possible that some or all of the VAT receivable may not ultimately be recovered as outcomes in Mexican tax courts and the process for recovering funds even if there is a successful outcome in litigation can be unpredictable.
Other Commitments and Contingencies
As part of its ongoing business and operations, the Company and its affiliates are required to provide surety bonds, bank letters of credit, bank guarantees and, in some cases, cash as financial support for various purposes, including
34
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements
environmental remediation, reclamation, collateral for gold hedges and other general corporate purposes. As of March 31,June 30, 2020 and December 31, 2019, the Company had surety bonds totaling $212.1 million and $215.6 million, respectively, in place as financial support for future reclamation and closure costs. The obligations associated with these instruments are generally related to performance requirements that the Company addresses through its ongoing operations and from time-to-time, the Company may be required to post collateral, including cash, to support these instruments. As the specific
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

requirements are met, the beneficiary of the associated instrument cancels and/or returns the instrument to the issuing entity. Certain of these instruments are associated with operating sites with long-lived assets and will remain outstanding until closure. The Company believes it is in compliance with all applicable bonding obligations and will be able to satisfy future bonding requirements through existing or alternative means, as they arise.

NOTE 18 – DISCONTINUED OPERATIONS
In December 2017, the Company and certain of its subsidiaries entered into a definitive agreement (as amended, the “Manquiri Agreement”) to sell all of the outstanding capital stock of Empresa Minera Manquiri S.A. (“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 Manquiri Agreement, the capital stock in Manquiri was sold to Ag-Mining Investments, AB, a privately-held Swedish company (the “Buyer”), in exchange for, among other items, (A) 2.0% net smelter returns royalty on all metals processed through the San Bartolomé mine’s processing facility (the “NSR”) and (B) promissory notes payable by the Buyer with an aggregate principal amount equal to $27.6 million (the “Manquiri Notes Receivable”). In September 2018, the Company entered into the Letter Agreement with the Buyer pursuant to which the total aggregate principal amount of the Manquiri Notes Receivable was reduced to $25.0 million, and the Buyer made a concurrent cash payment of $15.0 million to the Sellers in respect of the Manquiri Notes Receivable. In addition, the Company also agreed to forgo any rights to any value added tax refunds collected or received by Manquiri. 
On February 28, 2019, the parties executed a letter agreement (the “February Letter Agreement”), which amended certain terms of the Manquiri Agreement. Pursuant to the February Letter Agreement, the Buyer agreed to accelerate repayment of the remaining aggregate $6.0 million owed under the Manquiri Notes Receivable, which was received. As of the date of the entry into the February Letter Agreement, the remaining obligations under the Manquiri Agreement (including post-closing indemnification obligations) terminated. The Company recorded a $5.7 million gain on the sale Manquiri following the release of the indemnification liability (associated with termination of post-closing indemnification obligations) pursuant to the February Letter Agreement.
In January 2020, the Buyer purchased the NSR from Coeur by making a payment to Coeur of $4.5 million. Coeur recorded a gain of $0.4 million following the payment.

NOTE 19 – ADDITIONAL BALANCE SHEET DETAIL AND SUPPLEMENTAL CASH FLOW INFORMATION
Accrued liabilities and other consist of the following:
In thousandsMarch 31, 2020 December 31, 2019
Accrued salaries and wages$14,567
 $20,047
Silvertip contingent consideration—
 25,000
Deferred revenue (1)
9,909
 16,672
Income and mining taxes1,908
 11,243
Accrued operating costs3,395
 4,163
Taxes other than income and mining2,692
 3,554
Accrued interest payable5,266
 1,833
Operating lease liabilities12,198
 13,104
Accrued liabilities and other$49,935
 $95,616

In thousandsJune 30, 2020December 31, 2019
Accrued salaries and wages$16,338  $20,047  
Silvertip contingent consideration—  25,000  
Deferred revenue (1)
16,472  16,672  
Income and mining taxes335  11,243  
Accrued operating costs3,971  3,752  
Unrealized losses on derivatives14,485  411  
Taxes other than income and mining3,343  3,554  
Accrued interest payable1,709  1,833  
Operating lease liabilities11,804  13,104  
Accrued liabilities and other$68,457  $95,616  
(1) See Note 17 -- Commitments and Contingencies for additional details on deferred revenue liabilities
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statement of financial position that total the same such amounts shown in the statement of cash flows in the three and six months ended March 31,June 30, 2020 and 2019:
In thousandsMarch 31, 2020 March 31, 2019
Cash and cash equivalents$52,895
 $69,033
Restricted cash equivalents1,163
 2,989
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$54,058
 $72,022
35


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

NOTE 20 – SUBSEQUENT EVENTS

In thousandsJune 30, 2020June 30, 2019
Cash and cash equivalents$70,924  $37,907  
Restricted cash equivalents1,384  1,368  
Total cash, cash equivalents and restricted cash shown in the statement of cash flows$72,308  $39,275  
The 2019 novel strain of coronavirus (“COVID-19”) was characterized as a global pandemic by the World Health Organization on March 11, 2020. In early April 2020, in accordance with a decree from the Federal government of Mexico issued in response to COVID-19, that restricted all non-essential business activities (including mining) in the country, Coeur began taking steps toward temporarily suspending active mining and processing activities at Palmarejo. The Company is taking all appropriate actions to be able to safely and expeditiously ramp production back up once the suspension has been lifted.

All of the Company’s other active mines continue to operate at full capacity and there have been no confirmed cases of COVID-19 across Coeur’s portfolio. Precious metals mining is considered essential to support critical infrastructure under guidelines of the U.S. Department of Homeland Security and every state where Coeur operates in the U.S. (Nevada, Alaska and South Dakota). In addition, Coeur Alaska, Inc. is requiring that all employees who travel to the Kensington mine are required to submit to a 14-day quarantine in Juneau, Alaska before traveling to the mine.
36
The Company has completed various scenario planning analyses to consider potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). To provide additional flexibility to respond to potential downside scenarios, Coeur drew an additional $100.0 million from its RCF shortly after the end of the first quarter as a precautionary measure. As of April 22, 2020, the Company had approximately $150.0 million drawn under its RCF. Additionally, as Coeur seeks to proactively maximize its financial flexibility during these unprecedented levels of volatility and uncertainty, the Company intends to take the prudent step of re-establishing an at-the-market equity facility.




Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Coeur Mining, Inc. and its subsidiaries (collectively the “Company”, “our”, or “we”). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of these measures, please see “Non-GAAP Financial Performance Measures” at the end of this Item. We provide Costs applicable to sales (“CAS”) split, referred to as the co-product method, based on revenue contribution for Palmarejo, Rochester and Silvertip and based on the primary metal, referred to as the by-product method, for Wharf. Revenue from secondary metal, such as silver at Wharf, is treated as a cost credit.
Overview
We are primarily a gold and silver producer with five mines located in the United States, CanadaMexico and MexicoCanada and several exploration projects in North America.  
FirstSecond Quarter Highlights
For the quarter, Coeur reported revenue of $173.2$154.2 million and cash flow from operating activities of $(8.0)$9.9 million. The Company reported GAAP net loss from continuing operations of $11.9$1.2 million, or $0.01 per share. On an adjusted basis1, the Company reported EBITDA of $42.2 million and net income from continuing operations of $2.6 million, or $0.01 per share. For six months ended June 30, 2020, Coeur reported revenue of $327.4 million and cash flow from operating activities of $2.0 million. The Company reported GAAP net loss from continuing operations of $13.1 million, or $0.05 per share. On an adjusted basis1, the Company reported EBITDA of $46.6$88.6 million and net lossincome from continuing operations of $0.8$1.7 million, or $0.00$0.01 per share.
•
Proactive response to managing impacts of global COVID-19 pandemic
•Successful restart of Palmarejo post-suspension - Coeur safely restarted its Palmarejo mine, following receipt of updated guidance from the Mexican government that precious metals mining is now considered an essential business activity. After being temporarily suspended for approximately 45 days, production began ramping up in June and is expected to continue increasing during the second half of the year
•Prepared to begin construction on upcoming expansion at Rochester - The Company received authorizations necessary to advance the expansion under Plan of Operations Amendment 11 (“POA 11”) at Rochester. Coeur expects to commence construction on the project in early August 2020
•Strong operating and financial results at Kensington and Wharf - Kensington’s gold production remained strong during the second quarter, helping to generate $27.8 million in operating cash flow and $23.9 million of free cash flow1, compared to $11.9 million and $7.1 million, respectively, in the prior period. Gold production at Wharf increased 60% quarter-over-quarter, leading to $19.1 million and $18.8 million in operating and free cash flow1, respectively, compared to $2.6 million and $2.2 million in the first quarter of 2020
•Aggressive investment in exploration - Coeur continued to execute its largest exploration program in Company history, investing $13.0 million, a 60% increase over the prior period and approximately 90% higher than the second quarter of 2019. The Company plans to publish an exploration update in August 2020, outlining program highlights through the first half of the year
•Continued execution of hedging program to underpin expected cash flow - The Company took advantage of stronger gold prices to implement additional zero-cost collar (“ZCC”) hedges to support the expected funding requirement for the POA 11 expansion at Rochester, targeting up to 50% of the Company’s expected gold production in 2021 and 2022
•Higher cash position and successful debt reduction initiatives - Cash and cash equivalents totaled $70.9 million at June 30, 2020, 34% higher than at the end of the first quarter of 2020. The Company also repaid $90.0 million of its senior secured revolving credit facility (“RCF”) using cash on hand, leaving a $60.0 million balance at the end of the second quarter. Coeur intends to repay the remaining RCF balance by year-end from internally generated cash flow and expects cash to build over the coming quarters in preparation for the expansion at Rochester









37


- As part of Coeur’s corporate crisis management process, a special advisory committee was established in early March to evaluate and address ongoing concerns, risks and challenges associated with the 2019 novel coronavirus (“COVID-19”). Primary objectives of the committee remain (i) protecting the health of Coeur’s workforce and communities, and (ii) ensuring continuity of the Company’s operations to the extent possible
•
Financial results reflective of key elements of Company strategy - Gold sales represented a record high 74% of quarterly revenue, while Coeur’s three U.S. operations – all of which continue to operate – comprised 56% of quarterly revenue
•
Strong operational and financial performance at Palmarejo - Palmarejo was the Company’s top performing operation, driven by a 10% quarter over quarter increase in gold production. The operation generated $28.9 million in operating cash flow. Strong operational performance helped to generate $21.8 million of free cash flow1 during the first quarter
•
Improved crusher performance and major permitting milestone achieved at Rochester - Coeur processed 37,677 tons per day (“tpd”) through the upgraded crusher configuration at Rochester during the first quarter, exceeding its target by 11% and was 33% higher than the prior quarter. The Company also received the Record of Decision from the Bureau of Land Management for Plan of Operations Amendment 11 (“POA 11”), marking a significant achievement toward the planned expansion at Rochester
•
Advancing exploration efforts across portfolio - Coeur began its largest exploration program in Company history, drilling roughly 20% more footage than the prior period and nearly 60% more than the first quarter of 2019. The increased exploration activity was primarily related to the expanded drilling program underway at Palmarejo and the ramp up in drilling at the Sterling and Crown deposits in southern Nevada. Expanded drilling programs at Kensington and Silvertip also commenced during the quarter
•
Safe transition and advancing work on pre-feasibility study at Silvertip - The Company safely ramped down Silvertip, completing the transition to a temporary suspension of mining and processing activities announced in February. Zinc and lead markets continued to face significant headwinds during the first quarter, further validating Coeur’s decision to temporarily suspend active mining and processing activities. Work on the pre-feasibility study to evaluate a mill expansion is advancing
•
Additional execution of opportunistic hedging - The Company continued to add to its zero-cost collar (“ZCC”) gold hedging program during the quarter, with a total of 153,000 and 99,000 ounces now hedged through the remainder of 2020 and in 2021, respectively. Coeur also capitalized on multi-year low exchange rates for the Mexican Peso and Canadian Dollar by securing rate protection on a portion of its foreign currency-denominated expenses over the next two years. The increased hedging activity is being implemented to provide downside protection in preparation for the POA 11 expansion at Rochester, which is expected to be funded with a combination of internally generated cash flow and its senior secured revolving credit facility (the “RCF”)
•
Bolstered cash balance to enhance financial flexibility - As of March 31, 2020, Coeur had $52.9 million of cash and cash equivalents. As a precautionary measure, the Company further bolstered its cash position by drawing down an additional $100.0 million from its RCF shortly after the end of the quarter in response to potential impacts of COVID-19, bringing the total amount drawn to $150.0 million

Selected Financial and Operating Results
Three Months Ended March 31,Three Months Ended June 30,Six Months Ended June 30,
In thousands2020 2019In thousands2020201920202019
Financial Results from Continuing Operations:   Financial Results from Continuing Operations:
Gold sales$127,605
 $106,764
Gold sales$127,902  $110,326  $255,507  $217,090  
Silver sales$44,909
 $40,114
Silver sales$26,347  $44,963  $71,256  $85,077  
Zinc sales$(662) $5,634
Zinc sales$—  $2,604  $(662) $8,238  
Lead sales$1,315
 $2,358
Lead sales$—  $4,230  $1,315  $6,588  
Consolidated Revenue$173,167
 $154,870
Consolidated Revenue$154,249  $162,123  $327,416  $316,993  
Net income (loss)$(11,900) $(24,894)Net income (loss)$(1,209) $(36,764) $(13,109) $(61,658) 
Net income (loss) per share, diluted$(0.05) $(0.12)Net income (loss) per share, diluted$(0.01) $(0.18) $(0.05) $(0.30) 
Adjusted net income (loss)(1)
$(769) $(22,958)
Adjusted net income (loss)(1)
$2,601  $(22,985) $1,682  $(45,942) 
Adjusted net income (loss) per share, diluted(1)
$0.00
 $(0.11)
Adjusted net income (loss) per share, diluted(1)
$0.01  $(0.11) $0.01  $(0.22) 
EBITDA(1)
$25,451
 $14,778
EBITDA(1)
$35,276  $7,719  $60,727  $22,497  
Adjusted EBITDA(1)
$46,601
 $26,104
Adjusted EBITDA(1)
$42,150  $30,609  $88,601  $51,174  
Total debt(2)
$343,109
 $456,789
Total debt(2)
$348,619  $369,977  $348,619  $369,977  
Operating Results from Continuing Operations:   Operating Results from Continuing Operations:
Gold ounces produced85,077
 78,336
Gold ounces produced78,229  86,584  163,306  164,920  
Silver ounces produced2,676,418
 2,490,434
Silver ounces produced1,620,410  3,061,493  4,296,828  5,551,927  
Zinc pounds produced2,459,756
 3,719,013
Zinc pounds produced—  5,321,714  2,459,756  9,040,727  
Lead pounds produced2,176,847
 3,076,845
Lead pounds produced—  4,979,730  2,176,847  8,056,575  
Gold ounces sold85,635
 85,326
Gold ounces sold77,933  86,385  163,568  171,711  
Silver ounces sold2,700,778
 2,635,015
Silver ounces sold1,621,028  3,048,365  4,321,806  5,683,380  
Zinc pounds sold3,203,446
 4,723,069
Zinc pounds sold—  5,302,508  3,203,446  10,025,577  
Lead pounds sold2,453,485
 2,747,847
Lead pounds sold—  5,185,634  2,453,485  7,933,481  
Average realized price per gold ounce$1,490
 $1,251
Average realized price per gold ounce$1,641  $1,277  $1,562  $1,264  
Average realized price per silver ounce$16.63
 $15.22
Average realized price per silver ounce$16.25  $14.75  $16.49  $14.97  
Average realized price per zinc pound, gross$(0.21) $1.50
Average realized price per zinc pound, gross$—  $0.83  $(0.21) $1.15  
Average realized price per lead pound, gross$0.54
 $0.92
Average realized price per lead pound, gross$—  $0.87  $0.54  $0.89  
Financial and Operating Results from Discontinued Operations:   Financial and Operating Results from Discontinued Operations:
Income (loss) from discontinued operations$—
 $5,693
Income (loss) from discontinued operations$—  $—  $—  $5,693  
(1)See “Non-GAAP Financial Performance Measures.”
(2)Includes capital leases. Net of debt issuance costs and premium received.



COVID-19 Update

Coeur established a special advisory committee to evaluate ongoing concerns, risks and challenges with respect to COVID-19 across its operations and corporate headquarters in early March 2020. The primary goals of the committee include (i) protecting the health, safety and well-being of Coeur’s workforce and communities and (ii) ensuring the continuity of business operations. The committee meets regularly via video conference and has elevated its level of communications by proactively engaging with various stakeholders, including regulators, government officials, community partners and healthcare providers, among others.
The current status of each of the Company’s operations is highlighted below:
38
OperationLocationStatusCommentary
PalmarejoChihuahua, MexicoTemporarily suspendedPrecious metals mining not considered essential as part of decree issued by the Federal Government of Mexico on March 31, 2020
RochesterNevada, United StatesOperatingMining considered essential as part of State of Nevada regulations issued on March 20, 2020
KensingtonAlaska, United StatesOperatingMining considered essential as part of State of Alaska declaration on March 27, 2020
WharfSouth Dakota, United StatesOperatingState of South Dakota issued a public order mandating the closure of all public-facing businesses, which does not include Wharf, on March 23, 2020
SilvertipBritish Columbia, CanadaTemporarily suspendedPreviously announced temporary suspension of mining and processing activities (unrelated to COVID-19). No actions required at this time to comply with restrictions issued by the Government of British Columbia

Each of the Company’s operations has developed site-specific screening, education and modifications to work procedures to limit and identify COVID-19 exposure and transmission. Operational readiness is routinely being assessed as the situation continues to evolve and each site has scenario plans in place, should the need arise. Coeur is following guidance from the U.S. Centers for Disease Control and Prevention, Mexican and Canadian public health officials, World Health Organization as well as federal, state and local authorities to safeguard the health, safety and well-being of its employees, contractors and communities, and minimize business interruption.
Key initiatives that the Company has undertaken include:
Travel and site access restricted to business-critical needs; discretionary travel strongly discouraged and must be reported
Health and travel questionnaires as well as temperature checks required prior to entering sites
Increased cleaning and disinfecting of common areas
Social distancing, including limiting meetings to ten people (or less)
Extended rotational schedules at certain operations to reduce travel to and from site
All site-level employees who can and all corporate headquarter employees working remotely
Providing ongoing support to local communities, including donations of critical supplies
Partnering with local communities in communication and response efforts
Coeur has also evaluated its supply chain and metal sales risks at each operation and remains in close contact with critical vendors, customers and transportation providers, establishing back-up arrangements to mitigate the impact of any disruptions related to COVID-19. The Company has not experienced any material disruptions and has incurred minimal additional operating costs to date.

Consolidated Financial Results
Three Months Ended March 31,June 30, 2020 compared to Three Months Ended March 31,June 30, 2019
Revenue
Revenue increaseddecreased by $18.3$7.9 million as a result of lower gold and silver ounces sold (10% and 47%, respectively) due to the temporary suspension of active mining operations at Palmarejo due to a 19%government decree in response to COVID-19, the temporary suspension of operations at Silvertip in February, and 9%recovery delays at Rochester, partially offset by a 29% and 10% increase in average realized gold and silver prices, partially offset by the temporary suspension of operationsrespectively, combined with a 53% increase in gold ounces sold at Silvertip in February.Wharf. The Company sold 85,63577,933 gold ounces 2.7and 1.6 million silver ounces 3.2compared to 86,385 gold ounces, 3.0 million silver ounces, 5.3 million zinc pounds and 2.5 million lead pounds compared to 85,326 gold ounces, 2.6 million silver ounces, 4.7 million zinc lead pounds and 2.75.2 million lead pounds in the prior year. Gold contributed 74%to 83% of sales, silver contributed 26%17%, compared to 68% of sales from gold, 26%28% from silver, 4%2% from zinc and less than 2% from lead.

The following table summarizes consolidated metal sales:
Three months ended March 31, Increase PercentThree months ended June 30,Increase (Decrease)Percentage Change
In thousands2020 2019 (Decrease) ChangeIn thousands20202019
Gold sales$127,605
 $106,764
 $20,841
 20 %Gold sales$127,902  $110,326  $17,576  16 %
Silver sales44,909
 40,114
 4,795
 12 %Silver sales26,347  44,963  (18,616) (41)%
Zinc sales(662) 5,634
 (6,296) (112)%Zinc sales—  2,604  (2,604) (100)%
Lead sales1,315
 2,358
 (1,043) (44)%Lead sales—  4,230  (4,230) (100)%
Metal sales$173,167
 $154,870
 $18,297
 12 %Metal sales$154,249  $162,123  $(7,874) (5)%
Costs Applicable to Sales
Costs applicable to sales decreased primarily due to the temporary suspension of miningsuspensions at Palmarejo and processing activities at Silvertip and lower costs at Rochester and Kensington.Rochester. For a complete discussion of costs applicable to sales, see Results of Operations below.
Amortization
Amortization decreased $5.7$15.3 million, or 14%35%, resulting from lower sales volumes primarily due to the temporary suspension at SilvertipPalmarejo and longer assumed mine life at Palmarejo based on year-end 2019 reserve growth.Silvertip.
Expenses
General and administrative expenses decreased $0.6increased $0.9 million, or 6%11%, primarily due to higher compensation costs, partially offset by lower outside service and travel costs.
Exploration expense increased $2.7$6.1 million, or 72%107%, as a result of exploration expense at the Sterling/Crown project located in southern Nevada and higher exploration expense at Palmarejo, Silvertip and Kensington. The Company completed 119,471160,680 feet (36,415(48,976 meters) of expansion drilling and 50,20933,363 feet (15,304(10,169 meters) of infill drilling in the firstsecond quarter of 2020 compared to 27,724108,384 feet (8,450(33,035 meters) of expansion drilling and 62,40242,769 feet (19,020(13,036 meters) of infill drilling in the firstsecond quarter of 2019.
Pre-development, reclamation, and other expenses increased $2.1$14.3 million, or 48%331%, stemming from ongoing carrying and one-time severance costs at Silvertip partially offset byincluding a gain on$2.1 million write down of obsolete supply inventory, and incremental costs incurred to comply with the modification of a right of use lease.

Company’s COVID-19 health and safety protocols.
The following table summarizes pre-development, reclamation, and other expenses:
Three months ended June 30,Increase (Decrease)Percentage Change
In thousands20202019
COVID-19$6,108  $—  $6,108  100 %
Silvertip ongoing carrying costs5,183  —  5,183  100 %
Silvertip one-time temporary suspension costs3,829  —  3,829  100 %
Asset retirement accretion2,908  3,007  (99) (3)%
Other647  1,327  (680) (51)%
Pre-development, reclamation and other expense$18,675  $4,334  $14,341  331 %
39
 Three months ended March 31, Increase Percent
In thousands2020 2019 (Decrease) Change
Silvertip ongoing carrying costs$2,608
 $—
 $2,608
 — %
Silvertip one-time temporary suspension costs3,659
 —
 3,659
 — %
Gain on modification of right of use lease(4,051) —
 (4,051) — %
Asset retirement accretion2,847
 2,942
 (95) (3)%
Other1,492
 1,492
 —
 — %
Pre-development, reclamation and other expense$6,555
 $4,434
 $2,121
 48 %


Other Income and Expenses
Fair value adjustments, net, decreasedincreased to a gain of $10.1 million compared to a loss of $8.8 million compared to a gain of $9.1$5.3 million as a result of unfavorablefavorable fair value adjustments and realized gains primarily related to the Company’s equity investmentinvestments in Integra and Metalla, which had an estimated fair valuevalues of $3.5$8.0 million and $22.0$4.8 million, respectively, at March 31,June 30, 2020.
Interest expense (net of capitalized interest of $0.2$0.3 million) decreased to $5.1$5.8 million from $6.5$6.8 million due to lower average debt levels related to the RCF and 2024 Senior Notes.
Income and Mining Taxes
During the firstsecond quarter of 2020, income and mining tax benefitexpense of approximately $3.9$2.8 million results in an effective tax rate of 24.9%173.9% for 2020. This compares to income tax benefit of $8.7$5.5 million or effective tax rate of 25.8%13.1% for 2019. The Company’s effective tax rate is impacted by multiple factors as illustrated above. The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) the non-recognition of tax assets; (ii) foreign exchange rates; (iii) the impact of uncertain tax positions; (iv) variations in our income before income taxes; (v) geographic distribution of that income and (vi) mining taxes. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.
The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:
Three months ended June 30,
 20202019
In thousandsIncome (loss) before taxTax (expense) benefitIncome (loss) before taxTax (expense) benefit
United States$12,546  $827  $(16,835) $(1,399) 
Canada(15,621) 217  (27,568) 7,547  
Mexico4,805  (3,888) 2,292  (600) 
Other jurisdictions(95) —  (199) (2) 
$1,635  $(2,844) $(42,310) $5,546  
 Three months ended March 31,
 2020 2019
In thousandsIncome (loss) before taxTax (expense) benefit Income (loss) before taxTax (expense) benefit
United States$(11,005)$(736) $(6,047)$(2,162)
Canada(26,029)15
 (26,525)9,792
Mexico21,359
4,631
 (772)1,024
Other jurisdictions(164)29
 (208)4
 $(15,839)$3,939
 $(33,552)$8,658
A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A - Risk Factors” in the 2019 10-K.
Net Income (Loss) from Continuing Operations
Net loss from continuing operations was $11.9$1.2 million, or $0.05$0.01 per share, compared to net loss of $24.9$36.8 million, or $0.12$0.18 per share. The decrease in net loss from continuing operations was driven higher by strong operating results at PalmarejoWharf, a 29% and Kensington10% increase in average realized gold and lower operating costs at Silvertip. This was partially offset by lower production at Rochester and unfavorablesilver prices, respectively, favorable fair value adjustments and realized gains primarily related to the Company’s equity investmentinvestments in Metalla.Integra and Metalla and lower operating costs at Palmarejo and Silvertip. This was partially offset by lower sales of gold and silver (10% and 47%, respectively), higher exploration expense, ongoing carrying and one-time severance costs at Silvertip and incremental costs associated with the Company’s COVID-19 health and safety protocols. Adjusted net lossincome was $0.8$2.6 million, or $0.00$0.01 per share, compared to adjusted net loss of $23.0 million, or $0.11 per share (see “Non-GAAP Financial Performance Measures”).
Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019
Revenue
Revenue increased by $10.4 million as a result of a 24% and 10% increase in average realized gold and silver prices, respectively, and 18% stronger operating results at Wharf, partially offset by the temporary suspension of active mining operations at Palmarejo during a portion of the second quarter, the temporary suspension of operations at Silvertip in February and lower sales of gold and silver (5% and 24%, respectively). The Company sold 163,568 gold ounces, 4.3 million silver ounces, 3.2 million zinc pounds and 2.5 million lead pounds compared to 171,711 gold ounces, 5.7 million silver ounces, 10.0 million zinc pounds and 7.9 million lead pounds in the prior year. Gold contributed to 78% of sales, silver contributed 22%, compared to 67% of sales from gold, 27% from silver, 3% from zinc and less than 3% from lead.
40


        The following table summarizes consolidated metal sales:
Six months ended June 30,Increase (Decrease)Percentage Change
In thousands20202019
Gold sales$255,507  $217,090  $38,417  18 %
Silver sales71,256  85,077  (13,821) (16)%
Zinc sales(662) 8,238  (8,900) (108)%
Lead sales1,315  6,588  (5,273) (80)%
Metal sales$327,416  $316,993  $10,423  3 %
Costs Applicable to Sales
Costs applicable to sales decreased primarily due to the temporary suspensions at Palmarejo and Silvertip and lower costs at Rochester. For a complete discussion of costs applicable to sales, see Results of Operations below.
Amortization
Amortization decreased $21.0 million, or 25%, resulting from to the temporary suspensions at Palmarejo and Silvertip.
Expenses
General and administrative expenses increased slightly by $0.3 million, or 2%, primarily due to higher compensation costs, partially offset by lower travel costs.
Exploration expense increased $8.8 million, or 93%, as a result of exploration expense at the Sterling/Crown project located in southern Nevada and higher exploration expense at Palmarejo and Kensington. The Company completed 280,151 feet (85,391 meters) of expansion drilling and 83,572 feet (25,473 meters) of infill drilling in the first half of 2020 compared to 153,248 feet (46,710 meters) of expansion drilling and 105,171 feet (32,056 meters) of infill drilling in the first half of 2019.
Pre-development, reclamation, and other expenses increased $16.5 million, or 188%, stemming from ongoing carrying and one-time costs at Silvertip including a $2.1 million write down of obsolete supply inventory and incremental costs associated with the Company’s COVID-19 health and safety protocols, partially offset by a gain resulting form the modification of a right of use lease.

        The following table summarizes pre-development, reclamation, and other expenses:
Six months ended June 30,Increase (Decrease)Percentage Change
In thousands20202019
COVID-19$6,380  $—  $6,380  — %
Silvertip ongoing carrying costs7,792  —  7,792  — %
Silvertip one-time temporary suspension costs7,338  —  7,338  — %
Gain on modification of right of use lease(4,051) —  (4,051) — %
Asset retirement accretion5,755  5,950  (195) (3)%
Other2,016  2,818  (802) (28)%
Pre-development, reclamation and other expense$25,230  $8,768  $16,462  188 %
Other Income and Expenses
        Fair value adjustments, net, decreased to a gain of $1.2 million compared to $3.8 million as a result of unfavorable fair value adjustments and realized gains primarily related to the Company’s equity investments in Integra and Metalla, which had estimated fair values of $8.0 million and $4.8 million, respectively, at June 30, 2020.
        Interest expense (net of capitalized interest of $0.5 million) decreased to $10.9 million from $13.3 million due to lower average debt levels related to the RCF and 2024 Senior Notes.
41

Income and Mining Taxes
        During the first half of 2020, income and mining tax benefit of approximately $1.1 million results in an effective tax rate of 7.7% for 2020. This compares to income tax benefit of $14.2 million or effective tax rate of 18.7% for 2019. The Company’s effective tax rate is impacted by multiple factors as illustrated above. The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) the non-recognition of tax assets; (ii) foreign exchange rates; (iii) the impact of uncertain tax positions; (iv) variations in our income before income taxes; (v) geographic distribution of that income and (vi) mining taxes. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.
        The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:
Six months ended June 30,
 20202019
In thousandsIncome (loss) before taxTax (expense) benefitIncome (loss) before taxTax (expense) benefit
United States$1,540  $91  $(22,882) $(3,561) 
Canada(41,650) 232  (54,093) 17,339  
Mexico26,163  743  1,521  424  
Other jurisdictions(257) 29  (408) 2  
$(14,204) $1,095  $(75,862) $14,204  
        A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company will ultimately be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A - Risk Factors” in the 2019 10-K.
Net Income (Loss) from Continuing Operations
        Net loss from continuing operations was $13.1 million, or $0.05 per share, compared to net loss of $61.7 million, or $0.30 per share. The decrease in net loss from continuing operations was driven by strong operating results at Wharf, a 24% and 10% increase in average realized gold and silver prices, respectively, and lower operating costs at Palmarejo and Silvertip. This was partially offset by lower sales from Palmarejo and Rochester, higher explorations costs, ongoing carrying and one-time severance costs at Silvertip and incremental costs associated with the Company’s COVID-19 health and safety protocols. Adjusted net income was $1.7 million, or $0.01 per share, compared to adjusted net loss of $45.9 million, or $0.22 per share (see “Non-GAAP Financial Performance Measures”).
Net Income (loss) from Discontinued Operations
In respect of the San Bartolomé mine and processing facility’s operating results, income decreased $5.7 million. In February 2019, the Company recorded an adjustment to the gain from the Manquiri Divestiture following the release of a liability associated with the Company’s post-closing indemnification obligations which were extinguished at that time.








42

2020 Guidance Framework
In light2020 Production Guidance
GoldSilver
(oz)(K oz)
Palmarejo95,000 - 105,0006,000 - 7,000
Rochester27,000 - 33,0003,500 - 4,500
Kensington125,000 - 135,000—
Wharf80,000 - 90,000—
Silvertip
Total327,000 - 363,0009,500 - 11,500

2020 Costs Applicable to Sales Guidance
GoldSilver
($/oz)($/oz)
Palmarejo (co-product)$785 - $885$9.50 - $10.50
Rochester (co-product)$1,250 - $1,400$12.75 - $14.00
Kensington$900 - $1,000—
Wharf (by-product)$950 - $1,000—

2020 Capital, Exploration and G&A Guidance
($M)
Capital Expenditures, Sustaining$70 - $85
Capital Expenditures, Development$40 - $45
Exploration, Expensed$37 - $43
Exploration, Capitalized$7 - $11
General & Administrative Expenses$32 - $36

Note: The Company’s guidance figures assume $1,650/oz gold and $16.50/oz silver as well as CAD of the temporary suspension1.36 and MXN of mining and processing activities at Palmarejo and ongoing uncertainty regarding COVID-19, Coeur has decided to withdraw its full-year 2020 guidance. The Company will continue targeting safe execution of its operating plans and reevaluate instituting full-year 2020 guidance as the year progresses.21.00.



Results of Continuing Operations
Palmarejo
Three Months Ended March 31,Three Months Ended June 30,Six Months Ended June 30,
2020 20192020201920202019
Tons milled479,562
 378,987
Tons milled269,641  447,727  749,203  826,714  
Average gold grade (oz/t)0.07
 0.07
Average gold grade (oz/t)0.07  0.07  0.07  0.07  
Average silver grade (oz/t)4.69
 4.64
Average silver grade (oz/t)4.46  4.74  4.61  4.69  
Average recovery rate – Au91.6% 83.4%Average recovery rate – Au86.0 %87.7 %89.7 %85.7 %
Average recovery rate – Ag81.5% 72.8%Average recovery rate – Ag72.2 %81.8 %78.3 %77.7 %
Gold ounces produced31,578
 23,205
Gold ounces produced15,223  28,246  46,801  51,451  
Silver ounces produced1,834,891
 1,278,283
Silver ounces produced867,134  1,734,772  2,702,025  3,013,055  
Gold ounces sold31,287
 27,394
Gold ounces sold16,924  28,027  48,211  55,421  
Silver ounces sold1,894,789
 1,405,409
Silver ounces sold874,642  1,709,406  2,769,431  3,114,815  
Costs applicable to sales per gold ounce(1)
$644
 $716
Costs applicable to sales per gold ounce(1)
$690  $742  $659  $730  
Costs applicable to sales per silver ounce(1)
$8.35
 $9.70
Costs applicable to sales per silver ounce(1)
$8.18  $9.18  $8.31  $9.40  
(1)See Non-GAAP Financial Performance Measures.
43

Three Months Ended March 31,June 30, 2020 compared to Three Months Ended March 31,June 30, 2019
Gold and silver production increased 36%decreased 46% and 44%50%, respectively, resultingdue to the temporary suspension of active mining and processing activities in accordance with a government decree. After receiving guidance from improved recoveries and higher mined tons from Guadalupe, Independencia and the La Nación underground mine, whichMexican government in May that the suspension decree did not apply to precious metals mining, production began productionramping back up in June, increasing steadily during the third quartermonth. Workforce staffing levels are currently limited to approximately 85% due to compliance with restrictions related to COVID-19. Coeur expects workforce staffing to stay at similar levels for the remainder of 2019. 2020.
Metal sales were $74.3$38.0 million, or 43%25% of Coeur’s metal sales, compared with $53.2$59.3 million, or 34%37% of Coeur’s metal sales. Higher productionFavorable foreign exchange rates and lower unit dieselconsumable costs led to a 10%7% and 14%11% decrease in costs applicable to sales per gold and silver ounce, respectively. Amortization decreased to $13.2$7.3 million due to longer assumed mine life based on year-end 2019 reserve growth, partially offset by higherlower ounces sold. Capital expenditures decreased to $7.1$4.5 million from $8.7$7.6 million due to the impact of the temporary suspension on underground development and infill drilling activities.
Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019
        Gold and silver production decreased 9% and 10%, respectively, due to the temporary suspension of active mining and processing activities in accordance with a government decree issued in the second quarter. After receiving guidance from the Mexican government in May that the suspension decree did not apply to precious metals mining, production began ramping back up in June, increasing steadily during the month. Workforce staffing levels are currently limited to approximately 85% due to compliance with restrictions related to COVID-19. Coeur expects workforce staffing to stay at similar levels for the remainder of 2020.
Metal sales were $112.3 million, or 34% of Coeur’s metal sales, compared with $112.5 million, or 36% of Coeur’s metal sales. Favorable foreign exchange rates and lower consumable costs led to a 10% and 12% decrease in costs applicable to sales per gold and silver ounce, respectively. Amortization decreased to $20.4 million due to lower infrastructureounces sold. Capital expenditures at La Naciondecreased to $11.6 million from $16.2 million due to the impact of the temporary suspension on underground development and infill drilling activities and lower mining equipment purchases.
As previously disclosed, in early April 2020 Coeur began taking steps toward temporarily suspending active mining and processing activities at Palmarejo in accordance with a government-mandated decree. The Company is taking all appropriate actions to be able to safely and expeditiously ramp production back up once the suspension has been lifted.
Rochester
Three Months Ended March 31,Three Months Ended June 30,Six Months Ended June 30,
2020 20192020201920202019
Tons placed3,428,578
 2,667,559
Tons placed3,743,331  2,786,287  7,171,909  5,453,846  
Average gold grade (oz/t)0.002
 0.003
Average gold grade (oz/t)0.002  0.0030.002  0.003
Average silver grade (oz/t)0.57
 0.46
Average silver grade (oz/t)0.51  0.450.54  0.46
Gold ounces produced5,936
 8,256
Gold ounces produced5,159  8,609  11,095  16,865  
Silver ounces produced687,379
 959,905
Silver ounces produced728,312  970,673  1,415,691  1,930,578  
Gold ounces sold5,473
 8,511
Gold ounces sold5,278  8,642  10,751  17,153  
Silver ounces sold632,237
 1,000,453
Silver ounces sold723,679  961,634  1,355,916  1,962,087  
Costs applicable to sales per gold ounce(1)
$1,394
 $1,108
Costs applicable to sales per gold ounce(1)
$1,529  $1,257  $1,444  $1,182  
Costs applicable to sales per silver ounce(1)
$14.75
 $13.02
Costs applicable to sales per silver ounce(1)
$14.19  $14.38  $14.58  $13.70  
(1)See Non-GAAP Financial Performance Measures.

Three Months Ended March 31,June 30, 2020 compared to Three Months Ended March 31,June 30, 2019
Gold and silver production decreased 28%40% and 25%, respectively, due to the timingimpact of recoveries and the restockingdilution from stacking high-pressure grinding roll (“HPGR”) crushed material on top of metal inventoryhistoric ore on the Stage III and Stage IV leach pads.pad. Metal sales were $19.4$20.6 million, or 11%13% of Coeur’s metal sales, compared with $26.4$25.5 million, or 17%16% of Coeur’s metal sales. Costs applicable to sales per gold ounce increased 22% and per silver ounce decreased 1%, driven by higher repair and outside service costs, partially offset by higher silver grades and lower diesel costs. Amortization decreased to $3.0 million due to lower ounces sold. Capital expenditures increased to $5.8 million from $2.8 million due to higher POA 11 capital expenditures.
Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019
        Gold and silver production decreased 34% and 27%, respectively, due to the impact of dilution from stacking HPGR-crushed material on top of historic ore on the Stage IV leach pad, offsetting restocking of metal inventories. Metal sales were $40.0 million, or 12% of Coeur’s metal sales, compared with $51.8 million, or 16% of Coeur’s metal sales. Costs applicable to sales per gold and silver ounce increased 26%22% and 13%6%, respectively, driven by higher repair and outside service costs, partially offset by higher silver grades and lower production combined with higher maintenance costs and higher processing and refiningdiesel costs. Amortization decreased to $2.9$5.9 million due to lower ounces sold. Capital
44

expenditures increased to $5.1$10.9 million from $4.6$7.4 million due to higher Plan of

Operations AmendmentPOA 11 (“POA 11”) capital expenditures.
In March 2020, mining was classified as        Mining remains an essential business in Nevada, CoeurNevada. The Company implemented and continues to implement its Companywidemaintain strong health and safety protocols, aimed at Rochesterlimiting the exposure to, limit COVID-19 exposure and transmission.transmission of, COVID-19.
Kensington
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Tons milled170,478  160,510  332,819  324,842  
Average gold grade (oz/t)0.21  0.23  0.21  0.22  
Average recovery rate92.0 %93.0 %92.7 %91.6 %
Gold ounces produced33,058  34,049  65,080  64,022  
Gold ounces sold32,367  34,415  65,148  65,750  
Costs applicable to sales per gold ounce(1)
$939  $847  $935  $932  
 Three Months Ended March 31,
 2020 2019
Tons milled162,341
 164,332
Average gold grade (oz/t)0.21
 0.20
Average recovery rate93.5% 90.2%
Gold ounces produced32,022
 29,973
Gold ounces sold32,781
 31,335
Costs applicable to sales per gold ounce(1)
$931
 $1,027
(1)See Non-GAAP Financial Performance Measures.
(1)See Non-GAAP Financial Performance Measures.
Three Months Ended March 31,June 30, 2020 compared to Three Months Ended March 31,June 30, 2019
Gold production increased 7%decreased 3% due to higher goldlower grades coupled with lower recoveries, partially offset by higher recoveries.mill throughput. Metal sales were $51.7$55.2 million, or 30%36% of Coeur’s metal sales, compared to $40.3$45.2 million, or 26%28% of Coeur’s metal sales. Costs applicable to sales per gold ounce decreased 9%increased 11% due to higher production andemployee-related costs, partially offset by lower consumable and employee-relateddiesel costs. Amortization increased slightly to $11.9$12.9 million due to higher ounces sold.mining rates from Kensington and Jualin. Capital expenditures decreased to $4.8$3.9 million from $9.4$4.9 million due to lower underground development at Kensington, and Jualin and Raven,lower infill drilling.
Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019
Gold production increased 2% due to higher mill throughput and higher recoveries. Metal sales were $106.8 million, or 33% of Coeur’s metal sales, compared to $85.4 million, or 27% of Coeur’s metal sales. Costs applicable to sales per gold ounce increase slightly due to higher employee-related costs, partially offset by lower diesel costs. Amortization remained comparable at $24.8 million. Capital expenditures decreased to $8.7 million from $14.2 million due to lower underground development at Kensington and Jualin, and lower infill drilling and mining equipment expenditures.
In March 2020, mining was classified asMining continues to be considered an essential business in Alaska. Coeur continues to implement its Companywide safety protocols at Kensington to limit COVID-19 exposure and transmission. Rotational schedules at site have been temporarilyremain extended from 14 days to 28 days in response to concerns related to COVID-19. All employees are required by the Company to quarantine infor 7 days and undergo a Juneau-based facility for 14-daystesting protocol prior to starting their 28-day rotation.
Wharf
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Tons placed1,401,237  919,435  2,347,686  2,009,945  
Average gold grade (oz/t)0.032  0.0230.029  0.021
Gold ounces produced24,789  15,680  40,330  32,582  
Silver ounces produced24,964  12,379  39,825  25,863  
Gold ounces sold23,364  15,301  39,458  33,387  
Silver ounces sold22,707  12,364  37,475  26,416  
Costs applicable to sales per gold ounce(1)
$945  $998  $1,005  $972  
 Three Months Ended March 31,
 2020 2019
Tons placed946,449
 1,090,510
Average gold grade (oz/t)0.025
 0.020
Gold ounces produced15,541
 16,902
Silver ounces produced14,861
 13,484
Gold ounces sold16,094
 18,086
Silver ounces sold14,768
 14,052
Costs applicable to sales per gold ounce(1)
$1,092
 $950
(1)See Non-GAAP Financial Performance Measures.
(1)See Non-GAAP Financial Performance Measures.

Three Months Ended March 31,June 30, 2020 compared to Three Months Ended March 31,June 30, 2019
Gold production decreased 8% largelyincreased 58% driven by the impact of inclement weather on tons moved andsubstantially higher crushing rates, which led to lower tons placed.higher grades, and timing of recoveries. Metal sales were $25.9$40.5 million, or 15%26% of Coeur’s metal sales, compared to $24.0$20.2 million, or 16%12% of Coeur’s metal sales. Costs applicable to sales per gold ounce decreased 5% due to higher production and lower diesel costs, partially offset by a $3.3 million inventory write-down related to lower expected recoveries from leach pads 4 and 5. Amortization increased to $3.2 million due to higher ounces sold. Capital expenditures were $0.3 million.
45

Six Months Ended June 30, 2020 compared to Six Months Ended June 30, 2019
Gold production increased 24% due to substantially higher crushing rates in the second quarter, higher grades, and timing of recoveries. Metal sales were $66.3 million, or 20% of Coeur’s metal sales, compared to $44.3 million, or 14% of Coeur’s metal sales. Costs applicable to sales per gold ounce increased 15%3% due to lower production and higher maintenanceequipment rental and outside service costs and a $3.3 million inventory write-down related to lower expected recoveries from leach pads 4 and 5, partially offset by lower diesel costs. Amortization decreasedincreased to $2.4$5.6 million due to lowerhigher ounces sold. Capital expenditures were $0.4$0.7 million.
In March 2020,        South Dakota issued aDakota’s public order mandating the closure of all public-facing businesses which does not include Wharf. CoeurThe Company implemented and continues to implement its Companywidemaintain strong health and safety protocols, aimed at Wharflimiting the exposure to, limitand transmission of, COVID-19 exposure and transmission.


at Wharf.
Silvertip
 Three Months Ended March 31,
 
2020 (1)
 2019
Tons milled29,240
 62,051
Average silver grade (oz/t)7.03
 5.50
Average zinc grade (%)7.1% 5.9%
Average lead grade (%)5.2% 3.7%
Average recovery rate – Ag67.7% 69.9%
Average recovery rate – Zn59.3% 50.5%
Average recovery rate – Pb71.2% 66.8%
Silver ounces produced139,287
 238,762
Zinc pounds produced2,459,756
 3,719,013
Lead pounds produced2,176,847
 3,076,845
Silver ounces sold158,984
 215,101
Zinc pounds sold3,203,446
 4,723,069
Lead pounds sold2,453,485
 2,747,847
Costs applicable to sales per silver ounce(2)
NM (3)

 $33.12
Costs applicable to sales per zinc pound(2)
NM (3)

 $2.85
Costs applicable to sales per lead ounce(2)
NM (3)

 $2.11
(1)Operational results in the table above reflect performance prior to the temporary suspension of mining and processing activities in February 2020.
(2)See Non-GAAP Financial Performance Measures.
(3)Due to the temporary suspension of mining and processing activities these amounts are not meaningful.
Three Months Ended March 31, 2020 compared to Three Months Ended March 31, 2019
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Silver ounces produced—  343,669  139,287  582,431  
Zinc pounds produced—  5,321,714  2,459,756  9,040,727  
Lead pounds produced—  4,979,730  2,176,847  8,056,575  
Silver ounces sold—  364,961  158,984  580,062  
Zinc pounds sold—  5,302,508  3,203,446  10,025,577  
Lead pounds sold—  5,185,634  2,453,485  7,933,481  
Costs applicable to sales per silver ounce(2)
—  24.37
NM (3)
28.99
Costs applicable to sales per zinc pound(2)
—  1.87
NM (3)
2.20
Costs applicable to sales per lead ounce(2)
—  1.41
NM (3)
1.72
(1)Operational results in the table above reflect performance prior to the temporary suspension of mining and processing activities in February 2020.
(2)See Non-GAAP Financial Performance Measures.
(3)Due to the temporary suspension of mining and processing activities these amounts are not meaningful.
Silvertip temporarily suspended mining and processing activities (unrelated to COVID-19) in February 2020. Operational results in the table above reflect performance prior to the temporary suspension of mining and processing activities. Ongoing carrying and one-time costs are included in Pre-development, reclamation, and other.
Rotational schedules have been temporarily extended fromtransitioned back to 14 days to(previously 21 days in response todays) as a result of easing concerns related to COVID-19. Due to the temporary of mining and processing activities since mid-February, no further actions are required at this time to comply with restrictions currently issued by the Government ofCOVID-19 in British Columbia.


Liquidity and Capital Resources
At March 31,June 30, 2020, the Company had $54.1$72.3 million of cash, cash equivalents and restricted cash and $200.0$169.5 million available under its RCF. Cash and cash equivalents decreased $2.8increased $15.3 million in the threesix months ended March 31,June 30, 2020, primarily due to Silvertip operating costs, timinga 24% and 10% increase in average realized gold and silver prices, respectively, strong operational results from Kensington and Wharf, lower capital expenditures, proceeds from the sale of recoveriesMetalla Common Shares and a $10.0 million increase in the amount outstanding under the RCF, partially offset by lower production at Rochester, income and mining tax paymentsongoing carrying costs at PalmarejoSilvertip and the payment of the cash portion of the contingent consideration of $18.8 million associated with the Silvertip acquisition, partially offset by strong operational results from Palmarejo and Kensington, lower capital expenditures and an increase in the outstanding amounts under the RCF.acquisition. The Company has completed various scenario planning analyses to consider potential impacts of COVID-19 on its business, including volatility in commodity prices, temporary disruptions and/or curtailments of operating activities (voluntary or involuntary). To provide additional flexibility to respond to potential downside scenarios, Coeurthe Company drew an additionaldown $100.0 million fromunder its RCF shortly afterin April 2020. As the endsecond quarter progressed, however, and the risk of significant disruption to operations due to COVID-19 subsided, the firstCompany repaid $90.0 million under the RCF. Additionally, Coeur established the $100.0 million ATM Program during the second quarter as a precautionary measure. As of April 22, 2020, the Company had approximately $150.0 million drawn under its RCF. Additionally, as Coeur seeksmeans to proactively maximizeincrease its financial flexibility during these unprecedented levelsthe current period of volatility and uncertainty,uncertainty. At the date of this filing, the Company intendshas yet to takeissue shares of its common stock under the prudent stepATM Program. Since quarter-end the Company has posted cash collateral relating to a small portion of re-establishing an at-the-market equity facility.outstanding gold hedges, which the Company expects to restructure.
Cash Provided by Operating Activities from Continuing Operations
Net cash used inprovided by operating activities for the three months ended March 31,June 30, 2020 was $8.0$9.9 million, compared to $15.8$26.4 million for the three months ended March 31,June 30, 2019. Net cash provided by operating activities for the six months ended June
46

30, 2020 was $2.0 million, compared to $10.6 million for the six months ended June 30, 2019. Adjusted EBITDA from continuing operations for the three months ended March 31,June 30, 2020 was $46.6$42.2 million, compared to $26.1$30.6 million for the three months ended March 31,June 30, 2019. Adjusted EBITDA from continuing operations for the six months ended June 30, 2020 was $88.6 million, compared to $51.2 million for the six months ended June 30, 2019 (see “Non-GAAP Financial Performance Measures”). Net cash used in operating activities was impacted by the following key factors for the applicable periods:

Three Months Ended March 31,Three Months Ended June 30,Six Months Ended June 30,
In thousands2020 2019In thousands2020201920202019
Cash flow before changes in operating assets and liabilities$30,144
 $21,466
Cash flow before changes in operating assets and liabilities$16,411  $24,175  $46,555  $45,641  
Changes in operating assets and liabilities:   Changes in operating assets and liabilities:
Receivables(813) (9,735)Receivables(1,536) (7,624) (2,349) (17,359) 
Prepaid expenses and other(346) (2,684)Prepaid expenses and other1,081  (834) 735  (3,518) 
Inventories(21,925) (18,821)Inventories(8,056) (14,391) (29,981) (33,212) 
Accounts payable and accrued liabilities(15,051) (6,072)Accounts payable and accrued liabilities2,047  25,109  (13,004) 19,037  
Cash provided by (used in) continuing operating activities$(7,991) $(15,846)Cash provided by (used in) continuing operating activities$9,947  $26,435  $1,956  $10,589  
Net cash provided by operating activities increased $7.9decreased $16.5 million in the three months ended March 31,June 30, 2020 compared to the three months ended March 31,June 30, 2019, primarily due lower sales of gold and silver (10% and 47%, respectively), partially offset by a 29% and 10% increase in average realized gold and silver prices, respectively and a net inflow related to a prepayment for concentrate deliveries from Kensington of $7.0 million. Revenue for the three months ended June 30, 2020 decreased by $7.9 million, of which $37.1 million was due to lower volume of gold and silver sales, partially offset by an increase of $29.2 million as a result of higher average realized gold and silver prices.
Net cash provided by operating activities decreased $8.6 million in the six months ended June 30, 2020 compared to the six months ended June 30, 2019, primarily due to payments for accounts payable at Silvertip and lower sales of gold and silver (5% and 24%, respectively), partially offset by a 19%24% and 9%10% increase in average realized gold and silver prices, respectively, and the timing of VAT collection at Palmarejo, partially offset by the payments for accounts payable at Silvertip.Palmarejo. Revenue for the threesix months ended March 31,June 30, 2020 increased by $18.3$10.4 million, of which $16.6$47.1 million was due primarily tothe result of higher average realized gold and silver prices, and $1.7partially offset by a decrease of $36.7 million was due primarily to higherlower volume of gold and silver sales.
Cash Used in Investing Activities from Continuing Operations
Net cash used inprovided by investing activities in the three months ended March 31,June 30, 2020 was $17.7$2.9 million compared to $19.7net cash used in investing activities of $17.3 million in the three months ended March 31,June 30, 2019. Cash used inprovided by investing activities decreasedincreased primarily due to lower capital expenditures.expenditures and net proceeds of $19.4 million from the sale of Metalla Common Shares. The Company had capital expenditures of $22.2$16.7 million in the three months ended March 31,June 30, 2020 compared with $27.4$20.7 million in the three months ended March 31,June 30, 2019. Capital expenditures in the three months ended March 31,June 30, 2020 were primarily related to POA 11 at Rochester and underground development at Silvertip, Palmarejo and Kensington and POA 11 capital expenditures at Rochester.Kensington. Capital expenditures in the three months ended March 31,June 30, 2019 were primarily related to underground development at Silvertip, Palmarejo, and Kensington, a new 220-person campthickener at Palmarejo and the HPGR unit at Rochester.
Net cash used in investing activities in the six months ended June 30, 2020 was $14.8 million compared to $37.0 million in the six months ended June 30, 2019. Cash used in investing activities decreased primarily due to lower capital expenditures and net proceeds of $19.4 million from the sale of Metalla Common Shares. The Company had capital expenditures of $38.9 million in the six months ended June 30, 2020 compared with $48.2 million in the six months ended June 30, 2019. Capital expenditures in the six months ended June 30, 2020 were primarily related to POA 11 at Rochester and underground development at Palmarejo and Kensington. Capital expenditures in the six months ended June 30, 2019 were primarily related to underground development at Silvertip, Palmarejo, and Kensington, a new thickener at Palmarejo and the high-pressure grinding rollHPGR unit at Rochester.
Cash Provided by (Used in) Financing Activities from Continuing Operations
Net cash provided by financing activities in the three months ended March 31,June 30, 2020 increased to $23.4was $4.4 million compared to net cash used in financing activities of $10.7$41.9 million in the three months ended March 31,June 30, 2019. During the three months ended March 31,June 30, 2020, the Company drew $50.0borrowed $100.0 million and repaid $90.0 million under the RCF. During the three months ended June 30, 2019, the Company repaid $82.0 million under the RCF and received net proceeds of approximately $48.9 million from the sale of 16.6 million shares of its common stock at an average price of $3.00 per share.
Net cash provided by financing activities in the six months ended June 30, 2020 was $27.8 million compared to net cash used in financing activities of $52.6 million in the six months ended June 30, 2019. During the six months ended June 30, 2020, the Company borrowed $150.0 million from the RCF, partially offset by repayment of $90.0 million under the RCF and
47

the payment of cash contingent consideration of $18.8 million associated with the Silvertip acquisition. During the threesix months ended March 31,June 30, 2019, the Company borrowed $15.0 million and repaid $15.0$97.0 million under the RCF and received net proceeds of approximately $48.9 million from the RCF. sale of 16.6 million shares of its common stock at an average price of $3.00 per share.

Critical Accounting Policies and Accounting Developments
Please see Note 2 -- Summary of Significant Accounting Policies contained in the 2019 10-K and in Note 2 - Summary of Significant Accounting Policies contained in this Report for the Company’s critical accounting policies and estimates.

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

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

Non-GAAP Financial Performance Measures
Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles (“GAAP”). Unless otherwise noted, we present the Non-GAAP financial measures of our continuing operations in the tables below. For additional information regarding our discontinued operations, see Note 18 -- to the 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 is based, in part, on a review of non-GAAP financial measures used by mining industry analysts. The tax effect of adjustments are based on statutory tax rates and the Company’s tax attributes, including the impact through the Company’s valuation allowance. The combined effective rate of tax adjustments may not be consistent with the statutory tax rates or the Company’s effective tax rate due to jurisdictional tax attributes and related valuation allowance impacts which may minimize the tax effect of certain adjustments and may not apply to gains and losses equally. Adjusted net income (loss) is reconciled to Net income (loss) in the following table:
 Three Months Ended March 31,
In thousands except per share amounts2020 2019
Net income (loss)$(11,900) $(19,201)
(Income) loss from discontinued operations, net of tax—
 (5,693)
Fair value adjustments, net8,819
 (9,120)
Foreign exchange loss (gain)(6,620) 1,256
(Gain) loss on sale of assets and securities(374) (52)
Silvertip inventory write-down10,381
 15,447
Silvertip one-time costs3,659
 —
Silvertip lease modification(4,051) —
Silvertip gain on contingent consideration(955) —
COVID-19 one-time costs272
 —
Interest income on notes receivables—
 (180)
Tax effect of adjustments(1)
—
 (5,415)
Adjusted net income (loss)$(769) $(22,958)
    
Adjusted net income (loss) per share - Basic$0.00
 $(0.11)
Adjusted net income (loss) per share - Diluted$0.00
 $(0.11)

48

Three Months Ended June 30,Six Months Ended June 30,
In thousands except per share amounts2020201920202019
Net income (loss)$(1,209) $(36,764) $(13,109) $(55,965) 
(Income) loss from discontinued operations, net of tax—  —  —  (5,693) 
Fair value adjustments, net(10,067) 5,296  (1,248) (3,824) 
Foreign exchange loss (gain)626  889(5,994) 2,145  
(Gain) loss on sale of assets and securities(9) 72(383) 20  
Silvertip inventory write-down2,104  11,872  12,485  27,319  
Wharf inventory write-down3,323  —  3,323  —  
Silvertip one-time costs1,725  —  5,234  —  
Silvertip lease modification—  —  (4051) —  
Silvertip gain on contingent consideration—  —  (955) —  
COVID-19 one-time costs6,108  —  6,380  —  
Interest income on notes receivables—  (18) —  (198) 
Tax effect of adjustments(1)(2)
—  (4,332) —  (9,746) 
Adjusted net income (loss)$2,601  $(22,985) $1,682  $(45,942) 
Adjusted net income (loss) per share - Basic$0.01  $(0.11) $0.01  $(0.22) 
Adjusted net income (loss) per share - Diluted$0.01  $(0.11) $0.01  $(0.22) 
(1) For the three months ended March 31,June 30, 2019, tax effect of adjustments of $5.4$4.3 million (-89%(-25%) is primarily related to the write-down of Silvertip start-up costs.
(2) For the six months ended June 30, 2019, tax effect of adjustments of $9.7 million (-42%) is primarily related to the write-down of Silvertip start-up costs.

        

49

EBITDA and Adjusted EBITDA
Management uses EBITDA to evaluate the Company’s operating performance, to plan and forecast its operations, and assess leverage levels and liquidity measures. The Company believes the use of EBITDA reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. Adjusted EBITDA is a measure used in indenture governing the 2024 Senior Notes Indenture (as such term is defined in Note 8 -- Debt) and the RCF to determine our ability to make certain payments and incur additional indebtedness. EBITDA and Adjusted EBITDA do not represent, and should not be considered an alternative to, Net income (Loss) or Cash Flow from Operations as determined under GAAP. Other companies may calculate Adjusted EBITDA differently and those calculations may not be comparable to our presentation. Adjusted EBITDA is reconciled to Net income (loss) in the following table:
Three Months Ended June 30,Six Months Ended June 30,
In thousands except per share amounts2020201920202019
Net income (loss)$(1,209) $(36,764) $(13,109) $(55,965) 
(Income) loss from discontinued operations, net of tax—  —  —  (5,693) 
Interest expense, net of capitalized interest5,765  6,825  10,893  13,279  
Income tax provision (benefit)2,844  (5,546) (1,095) (14,204) 
Amortization27,876  43,204  64,038  85,080  
EBITDA35,276  7,719  60,727  22,497  
Fair value adjustments, net(10,067) 5,296  (1,248) (3,824) 
Foreign exchange (gain) loss(11) 468  65  1,133  
Asset retirement obligation accretion2,908  3,007  5,755  5,950  
Inventory adjustments and write-downs793  2,193  1,269  (1,723) 
(Gain) loss on sale of assets and securities(9) 72  (383) 20  
Silvertip inventory write-down2,104  11,872  12,485  27,319  
Silvertip one-time costs1,725  —  5,234  —  
Silvertip lease modification—  —  (4,051) —  
Silvertip gain on contingent consideration—  —  (955) —  
COVID-19 one-time costs6,108  —  6,380  —  
Wharf inventory write-down3,323  —  3,323  —  
Interest income on notes receivables—  (18) —  (198) 
Adjusted EBITDA$42,150  $30,609  $88,601  $51,174  
50
 Three Months Ended March 31,
In thousands except per share amounts2020 2019
Net income (loss)$(11,900) $(19,201)
(Income) loss from discontinued operations, net of tax—
 (5,693)
Interest expense, net of capitalized interest5,128
 6,454
Income tax provision (benefit)(3,939) (8,658)
Amortization36,162
 41,876
EBITDA25,451

14,778
Fair value adjustments, net8,819
 (9,120)
Foreign exchange (gain) loss76
 665
Asset retirement obligation accretion2,847
 2,943
Inventory adjustments and write-downs476
 1,623
(Gain) loss on sale of assets and securities(374) (52)
Silvertip inventory write-down10,381
 15,447
Silvertip one-time costs3,659
 —
Silvertip lease modification(4,051) —
Silvertip gain on contingent consideration(955) —
COVID-19 one-time costs272
 —
Interest income on notes receivables—
 (180)
Adjusted EBITDA$46,601

$26,104


Free Cash Flow
Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Cash Provided By (used in) Operating Activities of Continuing Operations less Capital expenditures from continuing operations as presented on the Consolidated Statements of Cash Flows. The Company believes Free Cash Flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although Free Cash Flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of Free Cash Flow is not necessarily comparable to such other similarly titled captions of other companies.
The following table sets forth a reconciliation of Free Cash Flow, a non-GAAP financial measure, to Cash Provided By (used in) Operating Activities of Continuing Operations, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow.
Three Months Ended March 31,Three Months Ended June 30,Six Months Ended June 30,
(Dollars in thousands)2020 2019(Dollars in thousands)2020201920202019
Cash flow from continuing operations$(7,991) $(15,846)Cash flow from continuing operations$9,947  $26,435  $1,956  $10,589  
Capital expenditures from continuing operations22,208
 27,438
Capital expenditures from continuing operations16,682  20,749  38,890  48,187  
Free cash flow$(30,199) (43,284)Free cash flow$(6,735) $5,686  $(36,934) (37,598) 
Costs Applicable to Sales
Management uses CAS to evaluate the Company’s current operating performance and life of mine performance from discovery through reclamation. We believe these measures assist analysts, investors and other stakeholders in understanding the costs associated with producing gold, silver, zinc and lead, assessing our operating performance and ability to generate free cash flow from operations and sustaining production. These measures may not be indicative of operating profit or cash flow from operations as determined under GAAP. Management believes that allocating CAS to gold, silver, zinc and lead based on gold, silver, zinc and lead metal sales relative to total metal sales best allows management, analysts, investors and other stakeholders to evaluate the operating performance of the Company. Other companies may calculate CAS differently as a result of reflecting the benefit from selling non-silver metals as a by-product credit, converting to silver equivalent ounces, and differences in underlying accounting principles and accounting frameworks such as in International Financial Reporting Standards.

Three Months Ended March 31,June 30, 2020
In thousands except per ounce or per pound amountsPalmarejoRochesterKensingtonWharfSilvertipTotal
Costs applicable to sales, including amortization (U.S. GAAP)$26,095  $21,348  $43,235  $25,653  $1,231  $117,562  
Amortization(7,270) (3,012) (12,853) (3,181) (1,231) (27,547) 
Costs applicable to sales$18,825  $18,336  $30,382  $22,472  $—  $90,015  
Metal Sales
Gold ounces16,924  5,278  32,367  23,364  77,933  
Silver ounces874,642  723,679  22,707  —  1,621,028  
Zinc pounds—  —  
Lead pounds—  —  
Costs applicable to sales
Gold ($/oz)$690  $1,529  $939  $945  
Silver ($/oz)$8.18  $14.19  $—  
Zinc ($/lb)$—  
Lead ($/lb)$—  
51

In thousands except per ounce or per pound amountsPalmarejo Rochester Kensington Wharf Silvertip Total
Costs applicable to sales, including amortization (U.S. GAAP)$49,149
 $19,860
 $42,429
 $20,267
 $23,002
 $154,707
Amortization(13,175) (2,904) (11,922) (2,444) (5,345) (35,790)
Costs applicable to sales$35,974
 $16,956
 $30,507
 $17,823
 $17,657
 $118,917
            
Metal Sales           
Gold ounces31,287
 5,473
 32,781
 16,094
   85,635
Silver ounces1,894,789
 632,237
   14,768
 158,984
 2,700,778
Zinc pounds        3,203,446
 3,203,446
Lead pounds        2,453,485
 2,453,485
            
Costs applicable to sales           
Gold ($/oz)$644
 $1,394
 $931
 $1,092
    
Silver ($/oz)$8.35
 $14.75
     
NM (1)

  
Zinc ($/lb)        
NM (1)

  
Lead ($/lb)        
NM (1)

  

Three Months Ended June 30, 2019
In thousands except per ounce or per pound amountsPalmarejoRochesterKensingtonWharfSilvertipTotal
Costs applicable to sales, including amortization (U.S. GAAP)$50,708  $28,656  $41,670  $17,691  $36,038  $174,763  
Amortization(14,212) (3,963) (12,537) (2,225) (9,878) (42,815) 
Costs applicable to sales$36,496  $24,693  $29,133  $15,466  $26,160  $131,948  
Metal Sales
Gold ounces28,027  8,642  34,415  15,301  86,385  
Silver ounces1,709,406  961,634  12,364  364,961  3,048,365  
Zinc pounds5,302,508  5,302,508  
Lead pounds5,185,634  5,185,634  
Costs applicable to sales
Gold ($/oz)$742  $1,257  $847  $998  
Silver ($/oz)$9.18  $14.38  $24.37  
Zinc ($/lb)$1.87  
Lead ($/lb)$1.41  


Six Months Ended June 30, 2020
In thousands except per ounce or per pound amountsPalmarejoRochesterKensingtonWharfSilvertipTotal
Costs applicable to sales, including amortization (U.S. GAAP)$75,244  $41,208  $85,664  $45,920  $24,233  $272,269  
Amortization(20,445) (5,916) (24,775) (5,625) (6,576) (63,337) 
Costs applicable to sales$54,799  $35,292  $60,889  $40,295  $17,657  $208,932  
Metal Sales
Gold ounces48,211  10,751  65,148  39,458  163,568  
Silver ounces2,769,431  1,355,916  37,475  158,984  4,321,806  
Zinc pounds3,203,446  3,203,446  
Lead pounds2,453,485  2,453,485  
Costs applicable to sales
Gold ($/oz)$659  $1,444  $935  $1,005  
Silver ($/oz)$8.31  $14.58  
NM (1)
Zinc ($/lb)
NM (1)
Lead ($/lb)
NM (1)
(1) Due to the temporary suspension of mining and processing activities these amounts are not meaningful.

52

Three
Six Months Ended March 31,June 30, 2019
In thousands except per ounce or per pound amountsPalmarejoRochesterKensingtonWharfSilvertipTotal
Costs applicable to sales, including amortization (U.S. GAAP)$98,480  $55,147  $85,572  $37,764  $70,849  $347,812  
Amortization(28,740) (8,000) (24,264) (4,906) (18,304) (84,214) 
Costs applicable to sales$69,740  $47,147  $61,308  $32,858  $52,545  $263,598  
Metal Sales
Gold ounces55,421  17,153  65,750  33,387  171,711  
Silver ounces3,114,815  1,962,087  26,416  580,062  5,683,380  
Zinc pounds10,025,577  10,025,577  
Lead pounds7,933,481  7,933,481  
Costs applicable to sales
Gold ($/oz)$730  $1,182  $932  $972  
Silver ($/oz)$9.40  $13.70  $28.99  
Zinc ($/lb)$2.20  
Lead ($/lb)$1.72  

Reconciliation of Costs Applicable to Sales for 2020 Guidance
In thousands except per ounce or per pound amountsPalmarejoRochesterKensingtonWharf
Costs applicable to sales, including amortization (U.S. GAAP)$178,977  $105,053  $178,595  $94,142  
Amortization(42,220) (15,177) (54,009) (11,202) 
Costs applicable to sales$136,757  $89,876  $124,586  $82,940  
By-product credit—  —  —  (998) 
Adjusted costs applicable to sales$136,757  $89,876  $124,586  $81,942  
Metal Sales
Gold ounces97,800  32,000  132,800  84,900  
Silver ounces6,300,000  3,800,000  60,350  
Revenue Split
Gold56 %46 %100 %100 %
Silver44 %54 %00
Costs applicable to sales
Gold ($/oz)$785 - $885$1,250 - $1,400$900 - $1,000$950 - $1,000
Silver ($/oz)$9.50 - $10.50$12.75 - $14.00



53
In thousands except per ounce or per pound amountsPalmarejo Rochester Kensington Wharf Silvertip Total
Costs applicable to sales, including amortization (U.S. GAAP)$47,772
 $26,491
 $43,902
 $20,073
 $34,811
 $173,049
Amortization(14,528) (4,037) (11,727) (2,681) (8,426) (41,399)
Costs applicable to sales$33,244
 $22,454
 $32,175
 $17,392
 $26,385
 $131,650
            
Metal Sales           
Gold ounces27,394
 8,511
 31,335
 18,086
   85,326
Silver ounces1,405,409
 1,000,453
   14,052
 215,101
 2,635,015
Zinc pounds        4,723,069
 4,723,069
Lead pounds        2,747,847
 2,747,847
            
Costs applicable to sales           
Gold ($/oz)$716
 $1,108
 $1,027
 $950
    
Silver ($/oz)$9.70
 $13.02
     $33.12
  
Zinc ($/lb)        $2.85
  
Lead ($/lb)        $2.11
  


Cautionary Statement Concerning Forward-Looking Statements
This report contains numerous forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) relating to the Company’s gold, silver, zinc and lead mining business, including statements regarding operations at the Company’s mines, exploration and development efforts, including the commencement of construction at Rochester related to the POA 11 project, COVID-19 planning, response and responsemitigation efforts, expectations regarding the Company's mines, hedging strategies, mine life, realization of deferred tax assets, sufficiencyexpectations about the recovery of assets, ability to discharge liabilities,VAT in Mexico, staffing levels, liquidity management, financing plans, and risk management strategies. Such forward-looking statements are identified by the use of words such as “believes,” “intends,” “expects,” “hopes,” “may,” “should,” “plan,” “projected,” “contemplates,” “anticipates” or similar words. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ materially from those projected in the forward-looking statements include (i) the risk factors set forth in Part II, Item 1A of this report and in “Risk Factors” section of the 2019 10-K, the risk factors set forth in the report on Form 10-Q for the quarterly period ended March 31, 2020, and the risks set forth in this MD&A and Item 3 of this report, (ii) the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), (iii) changes in the market prices of gold, silver, zinc and lead and a sustained lower price or higher treatment and refining charge environment, (iv) the uncertainties inherent in the Company’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays (including the impact of government shutdowns), ground conditions and grade variability, (v) any future labor disputes or work stoppages (involving the Company and its subsidiaries or third parties), (vi) the uncertainties inherent in the estimation of mineral reserves and mineralized material, (vii) changes that could result from the Company’s future acquisition of new mining properties or businesses, (viii) the loss of access to any third-party smelter to whom the Company markets its production, (ix) the potential effects of the COVID-19 pandemic, including impacts to the availability of our workforce, continued access to financing sources, government orders that may require temporary suspension of operations at one or more of our sites and effects on our suppliers or the refiners and smelters to whom the Company markets its production, (x) the effects of environmental and other governmental regulations, (xi) the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, and (xii) the Company’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt. Readers are cautioned not to put undue reliance on forward-looking statements. The Company disclaims any intent or obligation to update publicly these forward-looking statements, whether as a result of new information, future events or otherwise.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to various market risks as a part of its operations and engages in risk management strategies to mitigate these risks. The Company continually evaluates the potential benefits of engaging in these strategies based on current market conditions. The Company does not actively engage in the practice of trading derivative instruments for profit. Additional information about the Company’s derivative financial instruments may be found in Note 13 -- Derivative Financial Instruments in the notes to the Consolidated Financial Statements. This discussion of the Company’s market risk assessments contains “forward looking statements”. For additional information regarding forward-looking statements and risks and uncertainties that could impact the Company, please refer to Item 2 of this Report - Cautionary Statement Concerning Forward-Looking Statements. Actual results and actions could differ materially from those discussed below.
Gold, Silver, Zinc and Lead Prices
Gold, silver, zinc, and lead prices may fluctuate widely due to numerous factors, such as U.S. dollar strength or weakness, demand, investor sentiment, inflation or deflation, and global mine production. The Company’s profitability and cash flow may be significantly impacted by changes in the market price of gold, silver, zinc, and lead.
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 165,000307,800 ounces of gold at March 31,June 30, 2020 that settle monthly through December 2021.2022. The Company is targeting to hedge approximately 50% of expected gold production through 2021 and 2022. The weighted average strike prices on the put and call contracts are $1,459$1,551 and $1,824$1,869 per ounce of gold, respectively. The contracts are generally net cash settled and, if the price of gold at the time of the expiration is between the put and call prices, would expire at no cost to the Company. These Asian put and call option contracts expose us to (i) credit risk in the form of non-performance by counterparties for contracts in which the contract price exceeds the spot price of a commodity, (ii) price risk to the extent that the spot price exceeds the contract price for quantities of our production covered under contract positions; and (iii) liquidity risk to the extent counterparties exercise rights to cash collateral for out-of-money hedges under applicable instruments. To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit
54

exposure to each institution. The Company does not anticipate non-performance by any of its counterparties. For additional information, please see the section titled “Risk Factors” in the 2019 10-K and Part II, Item 1A of this report.
At March 31,June 30, 2020, the fair value of the put and call zero cost collars contracts was zero.a liability of $14.5 million. For the quarter ended March 31,June 30, 2020 the Company had not recognized any amount of gain or loss related to outstanding options in Revenue and the entire amount was included in accumulated other comprehensive income (loss). A 10% decreaseincrease in the price of gold at March 31,June 30, 2020 would result in a loss of $26.3 million and 10% decrease would result in a gain of $1.0 million.$1.8M. As of June 30, 2020, the closing price of gold was $1,768 per ounce. On July 29, 2020, the closing price of gold increased further to $1,951 per ounce.
Provisional Gold, Silver, Zinc and Lead Sales
The Company enters into sales contracts with third-party smelters and refiners which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an

embedded derivative that is required to be separated from the host contract. Depending on the difference between the price at the time of sale and the final settlement price, embedded derivatives are recorded as either a derivative asset or liability. The embedded derivatives do not qualify for hedge accounting and, as a result, are marked to the market gold, silver, zinc and silverlead 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 gold, silver, zinc and lead prices resulted in provisional pricing mark-to-market gain of $0.5 million as of March 31, 2020.
At March 31,June 30, 2020, the Company had outstanding provisionally priced sales of 5,23015,147 ounces of gold at an average price of $1,596, 0.3$1,728. Changes in gold prices resulted in provisional pricing mark-to-market gain of $1.2 million ounces of silver at an average price of $14.86, 13.6 million pounds of zinc at an average price of $0.86 and 3.8 million pounds of lead at an average price of $0.79.during the six months ended June 30, 2020. A 10% change in realized gold silver, zinc and lead prices would cause revenue to vary by $2.8$2.6 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 currency forward exchange contracts. At March 31,June 30, 2020, the Company entered into foreign currency forward contracts to manage this risk and designated these instruments as cash flow hedges of forecasted foreign denominated transactions. The Company had outstanding foreign currency forward exchange contracts to receive $2.6$2.2 billion Mexican Pesos at March 31,June 30, 2020 with an average exchange rate of 24.6024.74 that settle monthly through December 2021. The Company had outstanding foreign currency forward exchange contracts to receive $36$21.6 million Canadian Dollars at March 31,June 30, 2020 with an average exchange rate of 1.44 that settle monthly through December 2020. At March 31,June 30, 2020, the fair value of the foreign currency forward exchange contracts was a net asset of $0.1$6.8 million. For the quartersix months ended March 31,June 30, 2020 the Company had nothas recognized any amounta gain of gain or loss$0.7 million related to outstandingexpired options in Cost Applicable to Sales and the entire amount was includeda gain of $6.8 million related to outstanding options in accumulated other comprehensive income (loss).AOCI. A 10% increase or decrease in the exchange rates at March 31,June 30, 2020 would result in a loss of $7.4$2.8 million or a gain of $17.6$16.8 million, respectively.
Interest Rates
Interest Rate Hedging
We may use financial instruments to manage exposures to changes in interest rates on loans, which exposes us to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, it does not pose credit risk. We seek to minimize the credit risk in derivative instruments by entering into transactions with what we believe are high-quality counterparties. Market risk is the adverse effect on the value of a financial instrument that results from a change in interest rates. The Company had no outstanding interest rate swaps at March 31,June 30, 2020.

55

Item 4.Controls and Procedures
(a)Disclosure Controls and Procedures
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
(b)Management’s Report on Internal Control Over Financial Reporting
Based on an evaluation by the Company’s Chief Executive Officer and Chief Financial Officer, such officers concluded
that there was no change in the Company’s internal control over financial reporting during the three months ended March 31,June 30, 2020 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.


56

PART II

Item 1.   Legal Proceedings
See Note 17 -- Commitments and Contingencies in the notes to the Consolidated Financial Statements included herein.

Item 1A.  Risk Factors

Item 1A -- Risk Factors of the 2019 10-K sets forth information relating to important risks and uncertainties that could materially adversely affect the Company’s business, financial condition or operating results. Those risk factors have been supplemented and updated in the Form 10-Q filed for the quarterly period ended March 31, 2020 (the “First Quarter 10-Q”) and in this Form 10-Q. Except as supplemented and updated below and in the First Quarter 10-Q, the risk factors set forth in the 2019 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.

Our operations may be further disrupted, and our financial results may be adversely affected by the novel coronavirus pandemic.
The 2019 novel strain of coronavirus causing a contagious respiratory disease known as COVID-19, which was declared a pandemic by the World Health Organization on March 11, 2020, poses a material risk to our business and operations. If a significant portion of our workforce becomes unable to work or travel to our operations due to illness or state or federal government restrictions (including travel restrictions and “shelter-in-place” and similar orders restricting certain activities that may be issued or extended by authorities), we may be forced to reduce or suspend operations at one or more of our mines, which could reduce production and limit exploration activities and development projects and impact liquidity and financial results. In addition, we have implemented several initiatives to protect the health and safety of our employees, contractors and communities during this pandemic, including COVID-19 testing, contact tracing technology and procuring additional personal protective equipment for our employees, among others, some of which may result in additional costs to the Company. Illnesses or government restrictions, including the closure of national borders, related to COVID-19 also may disrupt the supply of raw goods, equipment, supplies and services upon which our operations rely. We also continue to monitor legislative initiatives in the U.S., Mexico and Canada to provide relief to businesses impacted by COVID-19 such as the U.S. Coronavirus Aid Relief and Economic Security (CARES) Act, to determine their potential impacts or benefits (if any) to our business.
On April 7,Early in the second quarter of 2020, we announced that we had begun taking steps towards temporarily suspendingsuspended active mining and processing activities at the Palmarejo complex in the State of Chihuahua, Mexico, in accordance with a government-mandated decree in response to COVID-19.COVID-19, and we began taking steps to restart active mining, processing and exploration activities at Palmarejo in accordance with updated guidance from the government approximately 45 days later. In addition, we are requiring all employees who travel to the Kensington mine to submit to a 14-day7-day quarantine and testing protocol in Juneau, Alaska before traveling to the mine. We believe this is an important step to protect the health and safety of all workers who stay at the Kensington camp, although it has required changes to worker scheduling and is expected to result in higher labor costs due to additional overtime pay and pay during the quarantine period. Illnesses or government restrictions, including the closure of national borders, related to COVID-19 also may disrupt the supply of raw goods, equipment, supplies and services upon which our operations rely.
The refiners and smelters upon which the Company relies to refine and process and, in some cases, purchase the gold and silver doré and gold, silver, zinc and lead concentrate produced by the Company’s mines, are also subject to these risks and may be required to reduce or suspend operations, which could impact the Company’s ability to sell its products to buyers and generate revenues. For example, on March 23, 2020, Argor-Heraeus, a Swiss refiner which provides refining services to several of our mines, announced that it was temporarily suspending operations in response to a government orderorder. Following the temporary suspension, Argor-Heraeus recommenced operations.
We may be subject to litigation if one or more employees contract COVID-19 at work or litigation initiated by stockholders who view decisions by the Board of Directors or management as inconsistent with duties to the Company under Delaware law or who may assert claims under federal securities laws. We understand that, as indicated by sharp increases in average premiums for director and has since recommenced operations.officer insurance policies in recent months, insurers expect increased litigation relating to COVID-19.
To the extent the COVID-19 pandemic adversely affects our business and financial results, it may also have the effect of heightening many of the other risks described in this “Risk Factors” section and those set forth under the caption “Risk Factors” in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2019, such as those relating to our operation and indebtedness and financing. Because of the highly uncertain and dynamic nature of events relating to the COVID-19 pandemic, it is not currently possible to estimate the impact of the pandemic on our business. However, these effects could have a material impact on our operations, and we will continue to monitor the COVID-19 situation closely.
57

Any downgradeThe Company is dependent upon information technology systems, which are subject to cybersecurity incidents, disruption, damage, failure and risks associated with implementation and integration.
The Company’s information technology systems used in its operations are subject to disruption, damage or failure from a variety of sources, including, without limitation, computer viruses, security breaches, cyberattacks, natural disasters and defects in design. Cybersecurity incidents, in particular, are evolving and include, but are not limited to, malicious software, attempts to gain unauthorized access to data or machines and equipment, and other electronic security breaches that could lead to disruptions in systems, unauthorized release of confidential or otherwise protected information, the credit ratings assignedcorruption of data or the disabling, misuse or malfunction of machines and equipment. Various measures have been implemented to manage the Company’s risks related to information technology systems and network disruptions. However, given the unpredictability of the timing, nature and scope of information or operational technology disruptions, the Company could potentially be subject to production downtimes, operational delays, operating accidents, the compromising of confidential or otherwise protected information, destruction or corruption of data, security breaches, other manipulation or improper use of our systems and networks or financial losses from remedial actions, any of which could have a material adverse effect on cash flows, financial condition or results of operations.
The Company faces increased cybersecurity risks due to the COVID-19 pandemic. For example, a portion of the Company’s workforce is working remotely to facilitate social distancing, and these employees may transmit data using unsecured internet connections despite training advising of those risks. In addition, our employees have faced increases in phishing and malware attacks and socially engineered cyberattacks which, in some cases, attempt to use the circumstances of the COVID-19 pandemic to gain unauthorized access to the Company’s information technology systems.
The Company could also be adversely affected by system or its debt securitiesnetwork disruptions if new or upgraded information technology systems are defective, not installed properly or not properly integrated into operations. Various measures have been implemented to manage the risks related to the system implementation and modification, but system modification failures could have a deterioration inmaterial adverse effect on the Company’s business, prospectsfinancial position and results of operations.
There are significant hazards associated with mining activities, some of which may not be fully covered by insurance.
The mining business is subject to risks and hazards, including environmental hazards, industrial accidents, the encountering of unusual or financial resultsunexpected geological formations, cave-ins, flooding, earthquakes and periodic interruptions due to inclement or hazardous weather conditions or machine failure, such as the failure of the secondary crusher in Rochester’s new crushing circuit in 2019, which impacted crushing rates. These occurrences could increase future borrowing costs, adversely affect the availability of new financing and may result in increased collateral requirements underdamage to, or destruction of, mineral properties or production facilities, personal injury or death, environmental damage, reduced production and delays in mining, asset write-downs, monetary losses and possible legal liability.
We maintain insurance policies that protect against property loss and business interruption in amounts that we believe are reasonable taking into account the Company’s existing surety bond portfolio.
There can benature of, and risks related to, our business and operations as well as the cost of policy premiums. Such insurance is, however, subject to certain exclusions, and there is no assuranceguarantee that any rating currently assigned by Standard & Poor’s Rating Services or Moody’s Investors Service to the Company will receive insurance proceeds with respect to a particular event or its debt securities will remain unchangedloss. Insurance fully covering many environmental risks, including potential liability for any given period of timepollution or that a rating will not be lowered if, in that rating agency’s judgment, future circumstances relating to the basis of the rating so warrant. If the Company is unable to maintain its outstanding debt and financial ratios at levels acceptable to the credit rating agencies, or should the Company’s business prospects or financial results deteriorate, includingother hazards as a result of declines in golddisposal of waste products occurring from exploration and silver prices or other factors beyond our control, our ratingsproduction, is not generally available. Any liabilities that the Company incurs for these risks and hazards could be downgraded by the rating agencies. A downgrade by the rating agenciessignificant and could adversely affect the value of the Company’s outstanding debt securities, its existing debt, and its ability to obtain new financing on favorable terms, if at all, increase borrowing costs, and such a downgrade or a deterioration in the Company’s

business prospects or financial results, or a lower risk tolerance by the Company’s sureties, may result in increased collateral requirements under the Company’s existing surety bond portfolio, which in turn may adversely affect the Company’s results of operations, cash flows and financial position.

condition.
The Company’s use of derivative contracts to protect against market price volatility exposes it to risk of opportunity loss, mark- to-market fair value adjustments, potential cash collateral calls and exposure to counterparty credit risk.
From time-to-time, the Company has in the past and in the future may enter into price risk management contracts to protect against fluctuations in the price of gold, silver, zinc and lead, foreign currency rates and changes in the prices of fuel and other input costs. These contracts could include forward sales or purchase contracts, futures contracts, purchased or sold put and call options and other derivative instruments. In 2019 and through April 17,July 24, 2020, the Company entered into price risk management contracts on a total of 292,000477,700 ounces of its expected gold production for 2020, 2021 and 20212022 after a significant increase in gold prices during 2019 and into the first half of 2020. The Company determined to implement these contracts to provide for a minimum level of revenue from the sales of the covered gold ounces in order to mitigate the risk of not being able to fund all or a portion of the costs of several projects at existing operations. As of June 30, 2020, contracts with respect to 307,800 ounces of gold were outstanding. See Note 13 — Derivative Financial Instruments in the notes to the Condensed Consolidated Financial Statements.
The use of derivative instruments can expose the Company to risk of an opportunity loss and may also result in significant mark-to-market fair value adjustments, which may require the Company to post cash or other collateral or have a material adverse impact on reported financial results. The Company’s exposure may be particularly acute for its derivative instruments accounted for as cash flow hedges, because those contracts are cash net settled on a monthly basis. The ceiling on
58

the gold ounces covered by the price risk management contracts described above, representing the highest price the Company could realize for those ounces under outstanding contracts, averages $1,825 per ounce for 2020 production, $1,875 per ounce for 2021 production and $2,030 per ounce for 2022 production. The price ceiling may be lower than actual spot gold prices at the time of sale under those contracts. As of June 30, 2020, the closing price of gold was $1,768 per ounce. On July 29, 2020, the closing price of gold increased further to $1,951 per ounce. The Company is exposed to credit risk with contract counterparties, including, but not limited to, sales contracts and derivative contracts. In the event of nonperformance in connection with a contract, the Company could be exposed to a loss of value for that contract.

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.

59

Item 5.Other Information
Item 5.  Other Information
In accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and the Company’s insider trading policy, Mitchell J. Krebs,Casey M. Nault, the Company’s Senior Vice President, General Counsel and Chief Executive Officer,Secretary, entered into a selling plan effective March 4,May 2, 2020. Under the selling plan, between MayJune 2020 and May 2022,August 2021, Mr. KrebsNault will sell a total of 200,000130,000 shares of the Company’s common stock so long as the market price of the common stock is higher than the minimum threshold priceprices 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.


60

Item 6.  Exhibits
31.1
10.1
ATM Equity Offering Sales Agreement, dated as of April 23, 2020, among Coeur Mining, Inc. and BofA Securities, Inc. and RBC Capital Markets, LLC (incorporated herein by reference to Exhibit 1.1 to Exhibit 1.1 to the Registrant’s Current Report on Form 8-K on April 23, 2020 (File No. 001-08641)).
31.1
Certification of the CEO (Filed herewith).
31.2
Certification of the CFO (Filed herewith).
32.1
CEO Section 1350 Certification (Filed herewith).
32.2
CFO Section 1350 Certification (Filed herewith).
95.1
Mine Safety Disclosure (Filed herewith).
101.INSXBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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*
104Cover Page Interactive Data File (formatted as Inline XBRL and included in Exhibit 101).
*    The following financial information from Coeur Mining, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31,June 30, 2020 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)
DatedJuly 29, 2020COEUR MINING, INC.
(Registrant)
DatedApril 22, 2020/s/ Mitchell J. Krebs
MITCHELL J. KREBS
President and Chief Executive Officer (Principal Executive Officer)
DatedApril 22,July 29, 2020/s/ Thomas S. Whelan
THOMAS S. WHELAN
Senior Vice President and Chief Financial Officer (Principal Financial Officer)

DatedApril 22,July 29, 2020/s/ Ken Watkinson
KEN WATKINSON
Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)


50
61