þ
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
¨
|
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Delaware
|
|
82-0109423
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
104 S. Michigan Ave., Suite 900 Chicago, Illinois
|
|
60603
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
|
|
þ
|
Accelerated filer
|
|
¨
|
|
|
|
|
||
Non-accelerated filer
|
|
¨
|
Smaller reporting company
|
|
¨
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
|
¨
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|
|
Page
|
Part I.
|
|
|
|
|
|
|
Item 1.
Financial Statements
|
|
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
Condensed Consolidated Statement of Changes in Stockholders’ Equity
|
|
|
|
|
|
Notes to Condensed Consolidated Financial Statements (Unaudited)
|
|
|
|
|
|
||
|
|
|
|
Consolidated Financial Results
|
|
|
|
|
|
Results of Operations
|
|
|
|
|
|
Liquidity and Capital Resources
|
|
|
|
|
|
Non-GAAP Financial Performance Measures
|
|
|
|
|
|
||
|
|
|
|
Item 4.
Controls and Procedures
|
|
|
|
|
Part II.
|
||
|
|
|
|
Item 1.
Legal Proceedings
|
|
|
|
|
|
Item 1A.
Risk Factors
|
|
|
|
|
|
Item 4.
Mine Safety Disclosures
|
|
|
|
|
|
Item 5. Other Information
|
|
|
|
|
|
Item 6.
Exhibits
|
|
|
|
|
Signatures
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Notes
|
In thousands, except share data
|
||||||||||||||
Revenue
|
3
|
$
|
148,795
|
|
|
$
|
159,920
|
|
|
$
|
482,049
|
|
|
$
|
495,014
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
||||||||
Costs applicable to sales
(1)
|
3
|
116,857
|
|
|
101,559
|
|
|
324,443
|
|
|
318,278
|
|
||||
Amortization
|
|
31,184
|
|
|
32,400
|
|
|
91,420
|
|
|
101,827
|
|
||||
General and administrative
|
|
7,729
|
|
|
7,345
|
|
|
24,183
|
|
|
24,495
|
|
||||
Exploration
|
|
8,157
|
|
|
9,791
|
|
|
21,269
|
|
|
22,856
|
|
||||
Pre-development, reclamation, and other
|
|
8,121
|
|
|
5,030
|
|
|
15,966
|
|
|
12,952
|
|
||||
Total costs and expenses
|
|
172,048
|
|
|
156,125
|
|
|
477,281
|
|
|
480,408
|
|
||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
||||||||
Loss on debt extinguishment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,342
|
)
|
||||
Fair value adjustments, net
|
10
|
715
|
|
|
—
|
|
|
2,907
|
|
|
(864
|
)
|
||||
Interest expense, net of capitalized interest
|
18
|
(5,818
|
)
|
|
(3,595
|
)
|
|
(17,801
|
)
|
|
(10,918
|
)
|
||||
Other, net
|
7
|
(20,903
|
)
|
|
2,361
|
|
|
(19,846
|
)
|
|
27,134
|
|
||||
Total other income (expense), net
|
|
(26,006
|
)
|
|
(1,234
|
)
|
|
(34,740
|
)
|
|
6,010
|
|
||||
Income (loss) before income and mining taxes
|
|
(49,259
|
)
|
|
2,561
|
|
|
(29,972
|
)
|
|
20,616
|
|
||||
Income and mining tax (expense) benefit
|
8
|
(3,785
|
)
|
|
(14,289
|
)
|
|
(19,451
|
)
|
|
(24,040
|
)
|
||||
Income (loss) from continuing operations
|
|
$
|
(53,044
|
)
|
|
$
|
(11,728
|
)
|
|
$
|
(49,423
|
)
|
|
$
|
(3,424
|
)
|
Income (loss) from discontinued operations
|
21
|
—
|
|
|
(4,924
|
)
|
|
550
|
|
|
(5,520
|
)
|
||||
NET INCOME (LOSS)
|
|
$
|
(53,044
|
)
|
|
$
|
(16,652
|
)
|
|
$
|
(48,873
|
)
|
|
$
|
(8,944
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on debt and equity securities
|
|
192
|
|
|
1,066
|
|
|
(173
|
)
|
|
(1,134
|
)
|
||||
Reclassification adjustments for impairment of equity securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
426
|
|
||||
Reclassification adjustments for realized (gain) loss on sale of equity securities
|
|
—
|
|
|
32
|
|
|
—
|
|
|
1,300
|
|
||||
Other comprehensive income (loss)
|
|
192
|
|
|
1,098
|
|
|
(173
|
)
|
|
592
|
|
||||
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
(52,852
|
)
|
|
$
|
(15,554
|
)
|
|
$
|
(49,046
|
)
|
|
$
|
(8,352
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME (LOSS) PER SHARE
|
9
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
|
$
|
(0.29
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.02
|
)
|
Net income (loss) from discontinued operations
|
|
0.00
|
|
|
(0.03
|
)
|
|
0.00
|
|
|
(0.03
|
)
|
||||
Basic
(2)
|
|
$
|
(0.29
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.05
|
)
|
Diluted income (loss) per share:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
|
$
|
(0.29
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.02
|
)
|
Net income (loss) from discontinued operations
|
|
0.00
|
|
|
(0.03
|
)
|
|
0.00
|
|
|
(0.03
|
)
|
||||
Diluted
(2)
|
|
$
|
(0.29
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.05
|
)
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
|
Notes
|
In thousands
|
||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
|
$
|
(53,044
|
)
|
|
$
|
(16,652
|
)
|
|
$
|
(48,873
|
)
|
|
$
|
(8,944
|
)
|
(Income) loss from discontinued operations
|
|
—
|
|
|
4,924
|
|
|
(550
|
)
|
|
5,520
|
|
||||
Adjustments:
|
|
|
|
|
|
|
|
|
||||||||
Amortization
|
|
31,184
|
|
|
32,400
|
|
|
91,420
|
|
|
101,827
|
|
||||
Accretion
|
|
3,117
|
|
|
2,402
|
|
|
10,321
|
|
|
6,954
|
|
||||
Deferred taxes
|
|
(3,276
|
)
|
|
2,504
|
|
|
(4,087
|
)
|
|
1,452
|
|
||||
Loss on debt extinguishment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,342
|
|
||||
Fair value adjustments, net
|
10
|
(715
|
)
|
|
—
|
|
|
(2,907
|
)
|
|
864
|
|
||||
Stock-based compensation
|
5
|
1,942
|
|
|
2,585
|
|
|
6,578
|
|
|
8,127
|
|
||||
Gain on sale of the Joaquin project
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,138
|
)
|
||||
Write-downs
|
|
30,787
|
|
|
—
|
|
|
30,787
|
|
|
—
|
|
||||
Other
|
|
2,938
|
|
|
(3,013
|
)
|
|
5,180
|
|
|
(8,330
|
)
|
||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Receivables
|
|
(5,930
|
)
|
|
6,289
|
|
|
(16,509
|
)
|
|
9,754
|
|
||||
Prepaid expenses and other current assets
|
|
1,377
|
|
|
(1,332
|
)
|
|
3,868
|
|
|
(2,177
|
)
|
||||
Inventory and ore on leach pads
|
|
(8,156
|
)
|
|
(2,282
|
)
|
|
(19,630
|
)
|
|
8,080
|
|
||||
Accounts payable and accrued liabilities
|
|
5,565
|
|
|
9,484
|
|
|
(35,562
|
)
|
|
(5,982
|
)
|
||||
CASH PROVIDED BY OPERATING ACTIVITIES OF CONTINUING OPERATIONS
|
|
5,789
|
|
|
37,309
|
|
|
20,036
|
|
|
105,349
|
|
||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
(7,877
|
)
|
|
(2,690
|
)
|
|
8,633
|
|
||||
CASH PROVIDED BY OPERATING ACTIVITIES
|
|
5,789
|
|
|
29,432
|
|
|
17,346
|
|
|
113,982
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
||||||||
Capital expenditures
|
|
(39,472
|
)
|
|
(28,982
|
)
|
|
(122,982
|
)
|
|
(89,680
|
)
|
||||
Proceeds from the sale of assets
|
|
393
|
|
|
1,016
|
|
|
549
|
|
|
16,471
|
|
||||
Purchase of investments
|
|
(15
|
)
|
|
(3,595
|
)
|
|
(415
|
)
|
|
(13,559
|
)
|
||||
Sale of investments
|
|
(78
|
)
|
|
403
|
|
|
12,682
|
|
|
11,321
|
|
||||
Proceeds from notes receivable
|
|
15,000
|
|
|
—
|
|
|
15,000
|
|
|
—
|
|
||||
Other
|
|
64
|
|
|
(4,319
|
)
|
|
(34
|
)
|
|
(4,385
|
)
|
||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS
|
|
(24,108
|
)
|
|
(35,477
|
)
|
|
(95,200
|
)
|
|
(79,832
|
)
|
||||
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
(412
|
)
|
|
(28,470
|
)
|
|
(1,175
|
)
|
||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
|
(24,108
|
)
|
|
(35,889
|
)
|
|
(123,670
|
)
|
|
(81,007
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
||||||||
Issuance of notes and bank borrowings, net of issuance costs
|
18
|
25,000
|
|
|
(2,257
|
)
|
|
40,000
|
|
|
242,701
|
|
||||
Payments on debt, capital leases, and associated costs
|
18
|
(25,533
|
)
|
|
(3,323
|
)
|
|
(48,355
|
)
|
|
(195,439
|
)
|
||||
Other
|
|
(77
|
)
|
|
(6
|
)
|
|
(4,916
|
)
|
|
(3,726
|
)
|
||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS
|
|
(610
|
)
|
|
(5,586
|
)
|
|
(13,271
|
)
|
|
43,536
|
|
||||
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
(21
|
)
|
|
(22
|
)
|
|
(62
|
)
|
||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
(610
|
)
|
|
(5,607
|
)
|
|
(13,293
|
)
|
|
43,474
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
|
183
|
|
|
(222
|
)
|
|
565
|
|
|
662
|
|
||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
(18,746
|
)
|
|
(12,286
|
)
|
|
(119,052
|
)
|
|
77,111
|
|
||||
Less net cash provided by (used in) discontinued operations
(1)
|
|
—
|
|
|
(8,491
|
)
|
|
(32,930
|
)
|
|
(3,302
|
)
|
||||
|
|
(18,746
|
)
|
|
(3,795
|
)
|
|
(86,122
|
)
|
|
80,413
|
|
||||
Cash, cash equivalents and restricted cash at beginning of period
|
|
136,026
|
|
|
210,809
|
|
|
203,402
|
|
|
126,601
|
|
||||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
117,280
|
|
|
$
|
207,014
|
|
|
$
|
117,280
|
|
|
$
|
207,014
|
|
|
|
September 30, 2018 (unaudited)
|
|
December 31, 2017
|
||||
ASSETS
|
Notes
|
In thousands, except share data
|
||||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
104,746
|
|
|
$
|
192,032
|
|
Receivables
|
14
|
30,480
|
|
|
19,069
|
|
||
Inventory
|
15
|
62,569
|
|
|
58,230
|
|
||
Ore on leach pads
|
15
|
77,515
|
|
|
73,752
|
|
||
Prepaid expenses and other
|
|
12,167
|
|
|
15,053
|
|
||
Assets held for sale
|
21
|
—
|
|
|
91,421
|
|
||
|
|
287,477
|
|
|
449,557
|
|
||
NON-CURRENT ASSETS
|
|
|
|
|
||||
Property, plant and equipment, net
|
16
|
285,871
|
|
|
254,737
|
|
||
Mining properties, net
|
17
|
865,043
|
|
|
829,569
|
|
||
Ore on leach pads
|
15
|
67,420
|
|
|
65,393
|
|
||
Restricted assets
|
13
|
21,361
|
|
|
20,847
|
|
||
Equity and debt securities
|
13
|
24,232
|
|
|
34,837
|
|
||
Receivables
|
14
|
28,035
|
|
|
28,750
|
|
||
Other
|
|
18,938
|
|
|
17,485
|
|
||
TOTAL ASSETS
|
|
$
|
1,598,377
|
|
|
$
|
1,701,175
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Accounts payable
|
|
$
|
55,132
|
|
|
$
|
48,592
|
|
Accrued liabilities and other
|
22
|
65,400
|
|
|
94,930
|
|
||
Debt
|
18
|
22,696
|
|
|
30,753
|
|
||
Reclamation
|
4
|
3,777
|
|
|
3,777
|
|
||
Liabilities held for sale
|
21
|
—
|
|
|
50,677
|
|
||
|
|
147,005
|
|
|
228,729
|
|
||
NON-CURRENT LIABILITIES
|
|
|
|
|
||||
Debt
|
18
|
406,494
|
|
|
380,569
|
|
||
Reclamation
|
4
|
122,977
|
|
|
117,055
|
|
||
Deferred tax liabilities
|
|
98,891
|
|
|
105,148
|
|
||
Other long-term liabilities
|
|
55,227
|
|
|
54,697
|
|
||
|
|
683,589
|
|
|
657,469
|
|
||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 187,026,334 issued and outstanding at September 30, 2018 and 185,637,724 at December 31, 2017
|
|
1,870
|
|
|
1,856
|
|
||
Additional paid-in capital
|
|
3,359,183
|
|
|
3,357,345
|
|
||
Accumulated other comprehensive income (loss)
|
|
(258
|
)
|
|
2,519
|
|
||
Accumulated deficit
|
|
(2,593,012
|
)
|
|
(2,546,743
|
)
|
||
|
|
767,783
|
|
|
814,977
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
1,598,377
|
|
|
$
|
1,701,175
|
|
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, 2017
|
185,638
|
|
|
$
|
1,856
|
|
|
$
|
3,357,345
|
|
|
$
|
(2,546,743
|
)
|
|
$
|
2,519
|
|
|
$
|
814,977
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(48,873
|
)
|
|
—
|
|
|
(48,873
|
)
|
|||||
Reclassification of unrealized gain (loss) on equity securities for ASU 2016-01
|
—
|
|
|
—
|
|
|
—
|
|
|
2,604
|
|
|
(2,604
|
)
|
|
—
|
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
|
(173
|
)
|
|||||
Common stock issued under stock-based compensation plans, net
|
1,389
|
|
|
14
|
|
|
1,838
|
|
|
—
|
|
|
—
|
|
|
1,852
|
|
|||||
Balances at September 30, 2018 (Unaudited)
|
187,027
|
|
|
$
|
1,870
|
|
|
$
|
3,359,183
|
|
|
$
|
(2,593,012
|
)
|
|
$
|
(258
|
)
|
|
$
|
767,783
|
|
1.
|
Identify the contract with the customer
|
2.
|
Identify the performance obligations
|
3.
|
Determine the transaction price
|
4.
|
Allocate the transaction price to the performance obligations
|
5.
|
Recognize revenue when (or as) the entity satisfies a performance obligation
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Opening Balance
|
$
|
13,799
|
|
|
$
|
16,835
|
|
|
$
|
14,883
|
|
|
$
|
19,281
|
|
Revenue Recognized
|
(582
|
)
|
|
$
|
(793
|
)
|
|
$
|
(1,666
|
)
|
|
$
|
(3,239
|
)
|
|
Closing Balance
|
$
|
13,217
|
|
|
$
|
16,042
|
|
|
$
|
13,217
|
|
|
$
|
16,042
|
|
Three months ended September 30, 2018
|
Palmarejo
|
|
Rochester
|
|
Silvertip
|
|
Kensington
|
|
Wharf
|
|
Other
|
|
Total
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Metal sales
|
$
|
55,456
|
|
|
$
|
35,524
|
|
|
$
|
4,051
|
|
|
$
|
29,771
|
|
|
$
|
23,993
|
|
|
$
|
—
|
|
|
$
|
148,795
|
|
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Costs applicable to sales
(1)
|
31,554
|
|
|
27,548
|
|
|
11,535
|
|
|
28,241
|
|
|
17,979
|
|
|
—
|
|
|
116,857
|
|
|||||||
Amortization
|
14,794
|
|
|
5,294
|
|
|
1,073
|
|
|
6,912
|
|
|
2,878
|
|
|
233
|
|
|
31,184
|
|
|||||||
Exploration
|
3,195
|
|
|
51
|
|
|
2,333
|
|
|
1,640
|
|
|
63
|
|
|
875
|
|
|
8,157
|
|
|||||||
Other operating expenses
|
771
|
|
|
4,362
|
|
|
148
|
|
|
333
|
|
|
699
|
|
|
9,537
|
|
|
15,850
|
|
|||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fair value adjustments, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
715
|
|
|
715
|
|
|||||||
Interest expense, net
|
(842
|
)
|
|
(115
|
)
|
|
166
|
|
|
(248
|
)
|
|
(9
|
)
|
|
(4,770
|
)
|
|
(5,818
|
)
|
|||||||
Other, net
|
(1,010
|
)
|
|
278
|
|
|
(447
|
)
|
|
(34
|
)
|
|
(422
|
)
|
|
(19,268
|
)
|
|
(20,903
|
)
|
|||||||
Income and mining tax (expense) benefit
|
(6,461
|
)
|
|
(83
|
)
|
|
4,320
|
|
|
—
|
|
|
(334
|
)
|
|
(1,227
|
)
|
|
(3,785
|
)
|
|||||||
Income (loss) from continuing operations
|
$
|
(3,171
|
)
|
|
$
|
(1,651
|
)
|
|
$
|
(6,999
|
)
|
|
$
|
(7,637
|
)
|
|
$
|
1,609
|
|
|
$
|
(35,195
|
)
|
|
$
|
(53,044
|
)
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Segment assets
(2)
|
$
|
368,257
|
|
|
$
|
252,291
|
|
|
$
|
405,334
|
|
|
$
|
225,161
|
|
|
$
|
98,978
|
|
|
$
|
79,079
|
|
|
$
|
1,429,100
|
|
Capital expenditures
|
$
|
4,686
|
|
|
$
|
3,582
|
|
|
$
|
17,949
|
|
|
$
|
11,960
|
|
|
$
|
1,176
|
|
|
$
|
119
|
|
|
$
|
39,472
|
|
Three months ended September 30, 2017
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Other
|
|
Total
|
||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metal sales
|
$
|
60,677
|
|
|
$
|
31,156
|
|
|
$
|
36,603
|
|
|
$
|
31,334
|
|
|
$
|
150
|
|
|
$
|
159,920
|
|
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Costs applicable to sales
(1)
|
33,255
|
|
|
23,275
|
|
|
27,658
|
|
|
17,330
|
|
|
41
|
|
|
101,559
|
|
||||||
Amortization
|
16,414
|
|
|
4,591
|
|
|
7,864
|
|
|
3,223
|
|
|
308
|
|
|
32,400
|
|
||||||
Exploration
|
4,517
|
|
|
531
|
|
|
2,966
|
|
|
207
|
|
|
1,570
|
|
|
9,791
|
|
||||||
Other operating expenses
|
319
|
|
|
846
|
|
|
356
|
|
|
648
|
|
|
10,206
|
|
|
12,375
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense, net
|
(112
|
)
|
|
(136
|
)
|
|
(113
|
)
|
|
(16
|
)
|
|
(3,218
|
)
|
|
(3,595
|
)
|
||||||
Other, net
|
(218
|
)
|
|
(73
|
)
|
|
(28
|
)
|
|
4
|
|
|
2,676
|
|
|
2,361
|
|
||||||
Income and mining tax (expense) benefit
|
(7,898
|
)
|
|
41
|
|
|
—
|
|
|
(963
|
)
|
|
(5,469
|
)
|
|
(14,289
|
)
|
||||||
Income (loss) from continuing operations
|
$
|
(2,056
|
)
|
|
$
|
1,745
|
|
|
$
|
(2,382
|
)
|
|
$
|
8,951
|
|
|
$
|
(17,986
|
)
|
|
$
|
(11,728
|
)
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4,924
|
)
|
|
$
|
(4,924
|
)
|
Segment assets
(2)
|
$
|
388,044
|
|
|
$
|
253,477
|
|
|
$
|
211,052
|
|
|
$
|
103,843
|
|
|
$
|
71,551
|
|
|
$
|
1,027,967
|
|
Capital expenditures
|
$
|
5,540
|
|
|
$
|
9,737
|
|
|
$
|
10,144
|
|
|
$
|
3,135
|
|
|
$
|
426
|
|
|
$
|
28,982
|
|
Nine months ended September 30, 2018
|
Palmarejo
|
|
Rochester
|
|
Silvertip
|
|
Kensington
|
|
Wharf
|
|
Other
|
|
Total
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Metal sales
|
$
|
196,237
|
|
|
$
|
102,689
|
|
|
$
|
4,051
|
|
|
$
|
101,806
|
|
|
$
|
77,266
|
|
|
$
|
—
|
|
|
$
|
482,049
|
|
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs applicable to sales
(1)
|
92,960
|
|
|
76,304
|
|
|
11,535
|
|
|
91,098
|
|
|
52,546
|
|
|
—
|
|
|
324,443
|
|
|||||||
Amortization
|
45,752
|
|
|
14,918
|
|
|
1,073
|
|
|
20,070
|
|
|
8,888
|
|
|
719
|
|
|
91,420
|
|
|||||||
Exploration
|
10,363
|
|
|
296
|
|
|
2,439
|
|
|
4,625
|
|
|
73
|
|
|
3,473
|
|
|
21,269
|
|
|||||||
Other operating expenses
|
2,252
|
|
|
6,149
|
|
|
173
|
|
|
981
|
|
|
2,052
|
|
|
28,542
|
|
|
40,149
|
|
|||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fair value adjustments, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,907
|
|
|
2,907
|
|
|||||||
Interest expense, net
|
(1,108
|
)
|
|
(338
|
)
|
|
(490
|
)
|
|
(722
|
)
|
|
(32
|
)
|
|
(15,111
|
)
|
|
(17,801
|
)
|
|||||||
Other, net
|
(2,399
|
)
|
|
704
|
|
|
(25
|
)
|
|
(104
|
)
|
|
(379
|
)
|
|
(17,643
|
)
|
|
(19,846
|
)
|
|||||||
Income and mining tax (expense) benefit
|
(22,550
|
)
|
|
(917
|
)
|
|
6,098
|
|
|
—
|
|
|
(2,009
|
)
|
|
(73
|
)
|
|
(19,451
|
)
|
|||||||
Income (loss) from continuing operations
|
$
|
18,853
|
|
|
$
|
4,471
|
|
|
$
|
(5,586
|
)
|
|
$
|
(15,794
|
)
|
|
$
|
11,287
|
|
|
$
|
(62,654
|
)
|
|
$
|
(49,423
|
)
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
550
|
|
|
$
|
550
|
|
Segment assets
(2)
|
$
|
368,257
|
|
|
$
|
252,291
|
|
|
$
|
405,334
|
|
|
$
|
225,161
|
|
|
$
|
98,978
|
|
|
$
|
79,079
|
|
|
$
|
1,429,100
|
|
Capital expenditures
|
$
|
23,458
|
|
|
$
|
6,884
|
|
|
$
|
55,623
|
|
|
$
|
34,032
|
|
|
$
|
2,682
|
|
|
$
|
303
|
|
|
$
|
122,982
|
|
Nine months ended September 30, 2017
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Other
|
|
Total
|
||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metal sales
|
$
|
191,616
|
|
|
$
|
102,926
|
|
|
$
|
110,134
|
|
|
$
|
88,598
|
|
|
$
|
1,740
|
|
|
$
|
495,014
|
|
Costs and Expenses
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|||||||||||
Costs applicable to sales
(1)
|
110,150
|
|
|
73,875
|
|
|
84,089
|
|
|
49,418
|
|
|
746
|
|
|
318,278
|
|
||||||
Amortization
|
50,995
|
|
|
15,345
|
|
|
25,389
|
|
|
8,883
|
|
|
1,215
|
|
|
101,827
|
|
||||||
Exploration
|
9,272
|
|
|
990
|
|
|
5,785
|
|
|
210
|
|
|
6,599
|
|
|
22,856
|
|
||||||
Other operating expenses
|
930
|
|
|
2,487
|
|
|
1,051
|
|
|
1,899
|
|
|
31,080
|
|
|
37,447
|
|
||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,342
|
)
|
|
(9,342
|
)
|
||||||
Fair value adjustments, net
|
—
|
|
|
(864
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(864
|
)
|
||||||
Interest expense, net
|
(339
|
)
|
|
(386
|
)
|
|
(266
|
)
|
|
(52
|
)
|
|
(9,875
|
)
|
|
(10,918
|
)
|
||||||
Other, net
|
(345
|
)
|
|
2,239
|
|
|
(893
|
)
|
|
429
|
|
|
25,704
|
|
|
27,134
|
|
||||||
Income and mining tax (expense) benefit
|
(22,313
|
)
|
|
(413
|
)
|
|
—
|
|
|
(2,980
|
)
|
|
1,666
|
|
|
(24,040
|
)
|
||||||
Income (loss) from continuing operations
|
$
|
(2,728
|
)
|
|
$
|
10,805
|
|
|
$
|
(7,339
|
)
|
|
$
|
25,585
|
|
|
$
|
(29,747
|
)
|
|
$
|
(3,424
|
)
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(5,520
|
)
|
|
$
|
(5,520
|
)
|
Segment assets
(2)
|
$
|
388,044
|
|
|
$
|
253,477
|
|
|
$
|
211,052
|
|
|
$
|
103,843
|
|
|
$
|
71,551
|
|
|
$
|
1,027,967
|
|
Capital expenditures
|
$
|
22,972
|
|
|
$
|
34,121
|
|
|
$
|
24,314
|
|
|
$
|
5,493
|
|
|
$
|
2,780
|
|
|
$
|
89,680
|
|
Assets
|
September 30, 2018
|
|
December 31, 2017
|
||||
Total assets for reportable segments
|
$
|
1,429,100
|
|
|
$
|
1,344,553
|
|
Cash and cash equivalents
|
104,746
|
|
|
192,032
|
|
||
Other assets
|
64,531
|
|
|
164,590
|
|
||
Total consolidated assets
|
$
|
1,598,377
|
|
|
$
|
1,701,175
|
|
Long-Lived Assets
|
September 30, 2018
|
|
December 31, 2017
|
||||
Mexico
|
$
|
351,509
|
|
|
$
|
370,188
|
|
United States
|
398,614
|
|
|
377,768
|
|
||
Canada
|
392,470
|
|
|
331,440
|
|
||
Other
|
8,321
|
|
|
4,910
|
|
||
Total
|
$
|
1,150,914
|
|
|
$
|
1,084,306
|
|
Revenue
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||||||
United States
|
$
|
89,289
|
|
|
$
|
99,093
|
|
|
$
|
281,762
|
|
|
$
|
301,658
|
|
Mexico
|
55,455
|
|
|
60,677
|
|
|
196,236
|
|
|
191,616
|
|
||||
Canada
|
4,051
|
|
|
—
|
|
|
4,051
|
|
|
—
|
|
||||
Australia
|
—
|
|
|
150
|
|
|
—
|
|
|
1,740
|
|
||||
Total
|
$
|
148,795
|
|
|
$
|
159,920
|
|
|
$
|
482,049
|
|
|
$
|
495,014
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Asset retirement obligation - Beginning
|
|
$122,907
|
|
|
|
$90,002
|
|
|
$
|
118,799
|
|
|
$
|
86,754
|
|
Accretion
|
2,830
|
|
|
2,167
|
|
|
8,141
|
|
|
6,347
|
|
||||
Additions and changes in estimates
|
—
|
|
|
3,116
|
|
|
—
|
|
|
3,116
|
|
||||
Settlements
|
(1,171
|
)
|
|
(656
|
)
|
|
(2,374
|
)
|
|
(1,588
|
)
|
||||
Asset retirement obligation - Ending
|
|
$124,566
|
|
|
|
$94,629
|
|
|
$
|
124,566
|
|
|
$
|
94,629
|
|
Grant date
|
|
Restricted
stock
|
|
Grant date fair
value of
restricted stock
|
|
Stock options
|
|
Grant date
fair value of
stock
options
|
|
Performance
shares
|
|
Grant date fair
value of
performance
shares
|
|||||||||
March 5, 2018
|
|
31,887
|
|
|
$
|
7.84
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
May 9, 2018
|
|
868,134
|
|
|
$
|
7.90
|
|
|
14,310
|
|
|
$
|
4.09
|
|
|
408,179
|
|
|
$
|
7.39
|
|
Award Type
|
|
Number of
Exercised Units
|
|
Weighted Average
Exercised Price
|
|
Number of Exercisable Units
|
|
Weighted Average
Exercisable Price |
||||||
Stock options
|
|
159,069
|
|
|
$
|
3.35
|
|
|
315,032
|
|
|
$
|
15.06
|
|
Stock appreciation rights
|
|
—
|
|
|
$
|
—
|
|
|
42,152
|
|
|
$
|
14.14
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Foreign exchange gain (loss)
|
$
|
(3,104
|
)
|
|
$
|
(39
|
)
|
|
$
|
(7,083
|
)
|
|
$
|
1,953
|
|
Gain (loss) on sale of assets and investments
|
(28
|
)
|
|
878
|
|
|
316
|
|
|
(674
|
)
|
||||
Write-down of Manquiri consideration
|
(18,599
|
)
|
|
—
|
|
|
(18,599
|
)
|
|
—
|
|
||||
Gain on sale of the Joaquin project
|
—
|
|
|
—
|
|
|
—
|
|
|
21,138
|
|
||||
Gain on repurchase of the Rochester royalty obligation
|
—
|
|
|
—
|
|
|
—
|
|
|
2,332
|
|
||||
Gain on sale of Endeavor stream and other royalties
|
—
|
|
|
1,172
|
|
|
—
|
|
|
1,172
|
|
||||
Mexico inflation adjustment
|
—
|
|
|
—
|
|
|
1,939
|
|
|
—
|
|
||||
Other
|
828
|
|
|
350
|
|
|
3,581
|
|
|
1,213
|
|
||||
Other, net
|
$
|
(20,903
|
)
|
|
$
|
2,361
|
|
|
$
|
(19,846
|
)
|
|
$
|
27,134
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||||||||||||||
In thousands
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
||||||||||||||||
United States
|
$
|
(35,250
|
)
|
$
|
(908
|
)
|
|
$
|
(6,055
|
)
|
$
|
(2,892
|
)
|
|
$
|
(45,397
|
)
|
$
|
(2,700
|
)
|
|
$
|
8,036
|
|
$
|
(4,072
|
)
|
Argentina
|
(2,058
|
)
|
(75
|
)
|
|
738
|
|
(366
|
)
|
|
(1,985
|
)
|
(172
|
)
|
|
281
|
|
1,704
|
|
||||||||
Canada
|
(13,194
|
)
|
4,432
|
|
|
—
|
|
—
|
|
|
(17,103
|
)
|
6,476
|
|
|
—
|
|
—
|
|
||||||||
Mexico
|
1,419
|
|
(7,234
|
)
|
|
3,210
|
|
(9,057
|
)
|
|
35,088
|
|
(23,055
|
)
|
|
9,665
|
|
(23,745
|
)
|
||||||||
Other jurisdictions
|
(176
|
)
|
—
|
|
|
4,668
|
|
(1,974
|
)
|
|
(575
|
)
|
—
|
|
|
2,634
|
|
2,073
|
|
||||||||
|
$
|
(49,259
|
)
|
$
|
(3,785
|
)
|
|
$
|
2,561
|
|
$
|
(14,289
|
)
|
|
$
|
(29,972
|
)
|
$
|
(19,451
|
)
|
|
$
|
20,616
|
|
$
|
(24,040
|
)
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands except per share amounts
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss) available to common stockholders:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
(53,044
|
)
|
|
$
|
(11,728
|
)
|
|
$
|
(49,423
|
)
|
|
$
|
(3,424
|
)
|
Income (loss) from discontinued operations
|
—
|
|
|
(4,924
|
)
|
|
550
|
|
|
(5,520
|
)
|
||||
|
$
|
(53,044
|
)
|
|
$
|
(16,652
|
)
|
|
$
|
(48,873
|
)
|
|
$
|
(8,944
|
)
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares:
|
|
|
|
|
|
|
|
||||||||
Basic
|
185,246
|
|
|
179,278
|
|
|
184,935
|
|
|
179,141
|
|
||||
Effect of stock-based compensation plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Diluted
|
185,246
|
|
|
179,278
|
|
|
184,935
|
|
|
179,141
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
(0.29
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.02
|
)
|
Income (loss) from discontinued operations
|
0.00
|
|
|
(0.03
|
)
|
|
0.00
|
|
|
(0.03
|
)
|
||||
Basic
(1)
|
$
|
(0.29
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
||||||||
Diluted income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Income (loss) from continuing operations
|
$
|
(0.29
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.02
|
)
|
Income (loss) from discontinued operations
|
0.00
|
|
|
(0.03
|
)
|
|
0.00
|
|
|
(0.03
|
)
|
||||
Diluted
(1)
|
$
|
(0.29
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.05
|
)
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Rochester royalty obligation
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(864
|
)
|
Interest rate swap
|
206
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||
Unrealized gain (loss) on equity securities
|
286
|
|
|
—
|
|
|
(2,898
|
)
|
|
—
|
|
||||
Realized gain (loss) on equity securities
|
(3
|
)
|
|
—
|
|
|
5,199
|
|
|
—
|
|
||||
Zinc options
|
226
|
|
|
—
|
|
|
588
|
|
|
—
|
|
||||
Fair value adjustments, net
|
$
|
715
|
|
|
$
|
—
|
|
|
$
|
2,907
|
|
|
$
|
(864
|
)
|
|
Fair Value at September 30, 2018
|
||||||||||||||
In thousands
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Equity and debt securities
|
$
|
24,232
|
|
|
$
|
19,665
|
|
|
$
|
—
|
|
|
$
|
4,567
|
|
Other derivative instruments, net
|
507
|
|
|
—
|
|
|
507
|
|
|
—
|
|
||||
|
$
|
24,739
|
|
|
$
|
19,665
|
|
|
$
|
507
|
|
|
$
|
4,567
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Silvertip contingent consideration
|
$
|
48,945
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48,945
|
|
Other derivative instruments, net
|
267
|
|
|
—
|
|
|
267
|
|
|
—
|
|
||||
|
$
|
49,212
|
|
|
$
|
—
|
|
|
$
|
267
|
|
|
$
|
48,945
|
|
|
Fair Value at December 31, 2017
|
||||||||||||||
In thousands
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Equity and debt securities
|
$
|
34,837
|
|
|
$
|
27,946
|
|
|
$
|
—
|
|
|
$
|
6,891
|
|
Other derivative instruments, net
|
251
|
|
|
—
|
|
|
251
|
|
|
—
|
|
||||
|
$
|
35,088
|
|
|
$
|
27,946
|
|
|
$
|
251
|
|
|
$
|
6,891
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Silvertip contingent consideration
|
$
|
47,965
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
47,965
|
|
Other derivative instruments, net
|
222
|
|
|
—
|
|
|
222
|
|
|
—
|
|
||||
|
$
|
48,187
|
|
|
$
|
—
|
|
|
$
|
222
|
|
|
$
|
47,965
|
|
|
Three Months Ended September 30, 2018
|
||||||||||||||||||
In thousands
|
Balance at the beginning of the period
|
|
Revaluation
|
|
Settlements
|
|
Accretion
|
|
Balance at the
end of the period |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity and debt securities
|
$
|
6,227
|
|
|
$
|
193
|
|
|
$
|
(1,853
|
)
|
|
$
|
—
|
|
|
$
|
4,567
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Silvertip contingent consideration
|
$
|
48,616
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
329
|
|
|
$
|
48,945
|
|
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||
In thousands
|
Balance at the beginning of the period
|
|
Revaluation
|
|
Settlements
|
|
Accretion
|
|
Balance at the
end of the
period
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity and debt securities
|
$
|
6,891
|
|
|
$
|
(172
|
)
|
|
$
|
(2,152
|
)
|
|
$
|
—
|
|
|
$
|
4,567
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Silvertip contingent consideration
|
$
|
47,965
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
980
|
|
|
$
|
48,945
|
|
|
September 30, 2018
|
||||||||||||||||||
In thousands
|
Book Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Manquiri Notes Receivable
|
$
|
9,207
|
|
|
$
|
9,207
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,207
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
5.875% Senior Notes due 2024
(1)
|
$
|
245,662
|
|
|
$
|
235,725
|
|
|
$
|
—
|
|
|
$
|
235,725
|
|
|
$
|
—
|
|
Revolving Credit Facility
(2)
|
$
|
120,000
|
|
|
$
|
120,000
|
|
|
$
|
—
|
|
|
$
|
120,000
|
|
|
$
|
—
|
|
|
December 31, 2017
|
||||||||||||||||||
In thousands
|
Book Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
5.875% Senior Notes due 2024
(1)
|
$
|
245,088
|
|
|
$
|
243,913
|
|
|
$
|
—
|
|
|
$
|
243,913
|
|
|
$
|
—
|
|
Revolving Credit Facility
(2)
|
$
|
100,000
|
|
|
$
|
100,000
|
|
|
$
|
—
|
|
|
$
|
100,000
|
|
|
$
|
—
|
|
In thousands except average prices and notional ounces
|
2018
|
|
Thereafter
|
||||
Provisional silver sales contracts
|
$
|
1,444
|
|
|
$
|
—
|
|
Average silver price per ounce
|
$
|
14.61
|
|
|
$
|
—
|
|
Notional ounces
|
98,832
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional gold sales contracts
|
$
|
14,802
|
|
|
$
|
—
|
|
Average gold price per ounce
|
$
|
1,224
|
|
|
$
|
—
|
|
Notional ounces
|
12,089
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional zinc sales contracts
|
$
|
2,123
|
|
|
$
|
—
|
|
Average zinc price per pound
|
$
|
1.20
|
|
|
$
|
—
|
|
Notional pounds
|
1,772,075
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional lead sales contracts
|
$
|
1,130
|
|
|
$
|
—
|
|
Average lead price per pound
|
$
|
0.92
|
|
|
$
|
—
|
|
Notional pound
|
1,230,193
|
|
|
—
|
|
||
|
|
|
|
||||
Zinc put options purchased
|
$
|
2,700
|
|
|
$
|
—
|
|
Average zinc strike price per metric ton
|
$
|
3,000
|
|
|
$
|
—
|
|
Notional metric tons
|
900
|
|
|
—
|
|
||
|
|
|
|
||||
Zinc call options sold
|
$
|
(3,645
|
)
|
|
$
|
—
|
|
Average zinc strike price per metric ton
|
$
|
4,050
|
|
|
$
|
—
|
|
Notional metric tons
|
900
|
|
|
—
|
|
||
|
|
|
|
||||
Fixed interest rate swap payable
|
$
|
960
|
|
|
$
|
—
|
|
Fixed Interest rate
|
2.46
|
%
|
|
—
|
|
||
Notional dollars
|
$
|
50,000
|
|
|
$
|
—
|
|
|
|
|
|
||||
Variable interest rate swap receivable
|
$
|
979
|
|
|
$
|
—
|
|
Average variable interest rate
|
2.51
|
%
|
|
$
|
—
|
|
|
Notional dollars
|
$
|
50,000
|
|
|
$
|
—
|
|
|
September 30, 2018
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Provisional metal sales contracts
|
$
|
310
|
|
|
$
|
267
|
|
Zinc options
|
339
|
|
|
—
|
|
||
Interest rate swaps
|
68
|
|
|
—
|
|
||
|
$
|
717
|
|
|
$
|
267
|
|
|
December 31, 2017
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Provisional metal sales contracts
|
$
|
251
|
|
|
$
|
222
|
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
Financial statement line
|
Derivative
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenue
|
Provisional metal sales contracts
|
$
|
34
|
|
|
$
|
147
|
|
|
$
|
15
|
|
|
$
|
596
|
|
Fair value adjustments, net
|
Zinc options
|
225
|
|
|
—
|
|
|
588
|
|
|
—
|
|
||||
Fair value adjustments, net
|
Interest rate swaps
|
206
|
|
|
—
|
|
|
18
|
|
|
—
|
|
||||
|
|
$
|
465
|
|
|
$
|
147
|
|
|
$
|
621
|
|
|
$
|
596
|
|
Common shares issued (4,191,679 at $8.59)
|
$
|
36,007
|
|
Cash
|
153,194
|
|
|
Contingent consideration
|
47,705
|
|
|
Total purchase price
(1)
|
$
|
236,906
|
|
Assets:
|
|
||
Receivables and other assets
|
$
|
6,828
|
|
Property, plant, and equipment
|
29,943
|
|
|
Mining properties, net
|
288,464
|
|
|
|
325,235
|
|
|
Liabilities:
|
|
||
Accounts payable and accrued liabilities
|
13,077
|
|
|
Asset retirement obligation
|
6,982
|
|
|
Debt and capital lease
|
20,149
|
|
|
Deferred income taxes
|
48,121
|
|
|
|
88,329
|
|
|
Net assets acquired
|
$
|
236,906
|
|
|
At September 30, 2018
|
||||||||||||||
In thousands
|
Cost
|
|
Gross
Unrealized
Losses
|
|
Gross
Unrealized
Gains
|
|
Estimated
Fair Value
|
||||||||
Equity Securities
|
|
|
|
|
|
|
|
||||||||
Metalla Royalty & Streaming Ltd.
|
8,147
|
|
|
—
|
|
|
2,113
|
|
|
10,260
|
|
||||
Northern Empire Resources Corp.
(1)
|
4,489
|
|
|
—
|
|
|
2,716
|
|
|
7,205
|
|
||||
Rockhaven Resources, Ltd.
|
2,064
|
|
|
(538
|
)
|
|
—
|
|
|
1,526
|
|
||||
Other
|
1,390
|
|
|
(716
|
)
|
|
—
|
|
|
674
|
|
||||
Equity securities
|
$
|
16,090
|
|
|
$
|
(1,254
|
)
|
|
$
|
4,829
|
|
|
$
|
19,665
|
|
|
|
|
|
|
|
|
|
||||||||
Debt Securities
|
|
|
|
|
|
|
|
||||||||
Metalla Royalty & Streaming Ltd.
|
$
|
4,825
|
|
|
$
|
(258
|
)
|
|
$
|
—
|
|
|
$
|
4,567
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and debt securities
|
$
|
20,915
|
|
|
$
|
(1,512
|
)
|
|
$
|
4,829
|
|
|
$
|
24,232
|
|
|
At December 31, 2017
|
||||||||||||||
In thousands
|
Cost
|
|
Gross
Unrealized
Losses
|
|
Gross
Unrealized
Gains
|
|
Estimated
Fair Value
|
||||||||
Equity Securities
|
|
|
|
|
|
|
|
||||||||
Metalla Royalty & Streaming Ltd.
|
$
|
6,294
|
|
|
$
|
—
|
|
|
$
|
1,354
|
|
|
$
|
7,648
|
|
Corvus Gold Inc.
|
3,582
|
|
|
—
|
|
|
4,518
|
|
|
8,100
|
|
||||
Almaden Minerals, Ltd.
|
3,125
|
|
|
(235
|
)
|
|
—
|
|
|
2,890
|
|
||||
Northern Empire Resources Corp.
|
4,489
|
|
|
—
|
|
|
1,077
|
|
|
5,566
|
|
||||
Rockhaven Resources, Ltd.
|
2,064
|
|
|
(193
|
)
|
|
—
|
|
|
1,871
|
|
||||
Kootenay Silver, Inc.
|
738
|
|
|
—
|
|
|
1
|
|
|
739
|
|
||||
Other
|
1,479
|
|
|
(453
|
)
|
|
405
|
|
|
1,431
|
|
||||
Equity securities
|
$
|
21,771
|
|
|
$
|
(881
|
)
|
|
$
|
7,355
|
|
|
$
|
28,245
|
|
|
|
|
|
|
|
|
|
||||||||
Debt Securities
|
|
|
|
|
|
|
|
||||||||
Metalla Royalty & Streaming Ltd.
|
$
|
6,677
|
|
|
$
|
(85
|
)
|
|
$
|
—
|
|
|
$
|
6,592
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and debt securities
|
$
|
28,448
|
|
|
$
|
(966
|
)
|
|
$
|
7,355
|
|
|
$
|
34,837
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net gain (loss)
|
$
|
283
|
|
|
$
|
(32
|
)
|
|
$
|
2,301
|
|
|
$
|
(1,300
|
)
|
Less: Realized (gain) loss
|
3
|
|
|
32
|
|
|
(5,199
|
)
|
|
1,300
|
|
||||
Unrealized gain (loss)
|
$
|
286
|
|
|
$
|
—
|
|
|
$
|
(2,898
|
)
|
|
$
|
—
|
|
|
Less than twelve months
|
|
Twelve months or more
|
|
Total
|
|||||||||
In thousands
|
Unrealized Losses
|
Fair Value
|
|
Unrealized Losses
|
Fair Value
|
|
Unrealized Losses
|
Fair Value
|
||||||
Debt securities
|
—
|
|
—
|
|
|
257
|
|
4,568
|
|
|
257
|
|
4,568
|
|
In thousands
|
September 30, 2018
|
|
December 31, 2017
|
||||
Current receivables:
|
|
|
|
||||
Trade receivables
|
$
|
5,965
|
|
|
$
|
5,883
|
|
Value added tax receivable
|
13,406
|
|
|
10,982
|
|
||
Manquiri Notes Receivable
|
9,207
|
|
|
—
|
|
||
Other
|
1,902
|
|
|
2,204
|
|
||
|
$
|
30,480
|
|
|
$
|
19,069
|
|
Non-current receivables:
|
|
|
|
||||
Value added tax receivable
|
$
|
28,035
|
|
|
$
|
28,750
|
|
|
28,035
|
|
|
28,750
|
|
||
Total receivables
|
$
|
58,515
|
|
|
$
|
47,819
|
|
In thousands
|
September 30, 2018
|
|
December 31, 2017
|
||||
Inventory:
|
|
|
|
||||
Concentrate
|
$
|
8,778
|
|
|
$
|
6,831
|
|
Precious metals
|
20,116
|
|
|
18,803
|
|
||
Supplies
|
33,675
|
|
|
32,596
|
|
||
|
62,569
|
|
|
58,230
|
|
||
Ore on leach pads:
|
|
|
|
||||
Current
|
77,515
|
|
|
73,752
|
|
||
Non-current
|
67,420
|
|
|
65,393
|
|
||
|
144,935
|
|
|
139,145
|
|
||
Total inventory and ore on leach pads
|
$
|
207,504
|
|
|
$
|
197,375
|
|
In thousands
|
September 30, 2018
|
|
December 31, 2017
|
||||
Land
|
$
|
9,082
|
|
|
$
|
9,408
|
|
Facilities and equipment
|
583,459
|
|
|
554,160
|
|
||
Assets under capital leases
|
109,042
|
|
|
82,753
|
|
||
|
701,583
|
|
|
646,321
|
|
||
Accumulated amortization
(1)
|
(474,431
|
)
|
|
(448,001
|
)
|
||
|
227,152
|
|
|
198,320
|
|
||
Construction in progress
|
58,719
|
|
|
56,417
|
|
||
Property, plant and equipment, net
|
$
|
285,871
|
|
|
$
|
254,737
|
|
September 30, 2018
|
Palmarejo
|
|
Rochester
|
|
Silvertip
|
|
Kensington
|
|
Wharf
|
|
La Preciosa
|
|
Other
|
|
Total
|
||||||||||||||||
Mine development
|
$
|
233,562
|
|
|
$
|
196,143
|
|
|
$
|
105,320
|
|
|
$
|
322,901
|
|
|
$
|
41,498
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
899,424
|
|
Accumulated amortization
|
(159,120
|
)
|
|
(149,729
|
)
|
|
(389
|
)
|
|
(191,026
|
)
|
|
(17,811
|
)
|
|
—
|
|
|
—
|
|
|
(518,075
|
)
|
||||||||
|
74,442
|
|
|
46,414
|
|
|
104,931
|
|
|
131,875
|
|
|
23,687
|
|
|
—
|
|
|
—
|
|
|
381,349
|
|
||||||||
Mineral interests
|
629,303
|
|
|
—
|
|
|
245,116
|
|
|
—
|
|
|
45,837
|
|
|
49,085
|
|
|
5,171
|
|
|
974,512
|
|
||||||||
Accumulated amortization
|
(463,565
|
)
|
|
—
|
|
|
(988
|
)
|
|
—
|
|
|
(25,843
|
)
|
|
—
|
|
|
(422
|
)
|
|
(490,818
|
)
|
||||||||
|
165,738
|
|
|
—
|
|
|
244,128
|
|
|
—
|
|
|
19,994
|
|
|
49,085
|
|
|
4,749
|
|
|
483,694
|
|
||||||||
Mining properties, net
|
$
|
240,180
|
|
|
$
|
46,414
|
|
|
$
|
349,059
|
|
|
$
|
131,875
|
|
|
$
|
43,681
|
|
|
$
|
49,085
|
|
|
$
|
4,749
|
|
|
$
|
865,043
|
|
December 31, 2017
|
Palmarejo
|
|
Rochester
|
|
Silvertip
|
|
Kensington
|
|
Wharf
|
|
La Preciosa
|
|
Total
|
||||||||||||||
Mine development
|
$
|
214,383
|
|
|
$
|
193,881
|
|
|
$
|
57,214
|
|
|
$
|
298,749
|
|
|
$
|
40,618
|
|
|
$
|
—
|
|
|
$
|
804,845
|
|
Accumulated amortization
|
(146,598
|
)
|
|
(144,390
|
)
|
|
—
|
|
|
(178,632
|
)
|
|
(15,748
|
)
|
|
—
|
|
|
(485,368
|
)
|
|||||||
|
67,785
|
|
|
49,491
|
|
|
57,214
|
|
|
120,117
|
|
|
24,870
|
|
|
—
|
|
|
319,477
|
|
|||||||
Mineral interests
|
629,303
|
|
|
—
|
|
|
245,116
|
|
|
—
|
|
|
45,837
|
|
|
49,085
|
|
|
969,341
|
|
|||||||
Accumulated amortization
|
(435,215
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,034
|
)
|
|
—
|
|
|
(459,249
|
)
|
|||||||
|
194,088
|
|
|
—
|
|
|
245,116
|
|
|
—
|
|
|
21,803
|
|
|
49,085
|
|
|
510,092
|
|
|||||||
Mining properties, net
|
$
|
261,873
|
|
|
$
|
49,491
|
|
|
$
|
302,330
|
|
|
$
|
120,117
|
|
|
$
|
46,673
|
|
|
$
|
49,085
|
|
|
$
|
829,569
|
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||||||||
In thousands
|
Current
|
|
Non-Current
|
|
Current
|
|
Non-Current
|
||||||||
2024 Senior Notes, net
(1)
|
$
|
—
|
|
|
$
|
245,662
|
|
|
$
|
—
|
|
|
$
|
245,088
|
|
Revolving Credit Facility
(2)
|
—
|
|
|
120,000
|
|
|
—
|
|
|
100,000
|
|
||||
Capital lease obligations
|
22,696
|
|
|
40,832
|
|
|
16,559
|
|
|
35,481
|
|
||||
Silvertip debt obligation
|
—
|
|
|
—
|
|
|
14,194
|
|
|
—
|
|
||||
|
$
|
22,696
|
|
|
$
|
406,494
|
|
|
$
|
30,753
|
|
|
$
|
380,569
|
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
2024 Senior Notes
|
$
|
3,672
|
|
|
$
|
3,672
|
|
|
$
|
11,016
|
|
|
$
|
4,937
|
|
2021 Senior Notes
|
—
|
|
|
—
|
|
|
—
|
|
|
6,221
|
|
||||
Revolving Credit Facility
|
1,515
|
|
|
—
|
|
|
4,035
|
|
|
—
|
|
||||
Capital lease obligations
|
512
|
|
|
402
|
|
|
1,551
|
|
|
1,092
|
|
||||
Amortization of debt issuance costs
|
323
|
|
|
180
|
|
|
972
|
|
|
518
|
|
||||
Accretion of debt premium
|
—
|
|
|
—
|
|
|
—
|
|
|
(71
|
)
|
||||
Accretion of Silvertip contingent consideration
|
329
|
|
|
—
|
|
|
980
|
|
|
—
|
|
||||
Other debt obligations
|
196
|
|
|
13
|
|
|
312
|
|
|
30
|
|
||||
Capitalized interest
|
(729
|
)
|
|
(672
|
)
|
|
(1,065
|
)
|
|
(1,809
|
)
|
||||
Total interest expense, net of capitalized interest
|
$
|
5,818
|
|
|
$
|
3,595
|
|
|
$
|
17,801
|
|
|
$
|
10,918
|
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
89,289
|
|
|
$
|
59,506
|
|
|
$
|
—
|
|
|
$
|
148,795
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales
(1)
|
—
|
|
|
73,768
|
|
|
43,089
|
|
|
—
|
|
|
116,857
|
|
|||||
Amortization
|
232
|
|
|
15,084
|
|
|
15,868
|
|
|
—
|
|
|
31,184
|
|
|||||
General and administrative
|
7,682
|
|
|
3
|
|
|
44
|
|
|
—
|
|
|
7,729
|
|
|||||
Exploration
|
383
|
|
|
2,245
|
|
|
5,529
|
|
|
—
|
|
|
8,157
|
|
|||||
Pre-development, reclamation, and other
|
1,302
|
|
|
5,456
|
|
|
1,363
|
|
|
—
|
|
|
8,121
|
|
|||||
Total costs and expenses
|
9,599
|
|
|
96,556
|
|
|
65,893
|
|
|
—
|
|
|
172,048
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value adjustments, net
|
745
|
|
|
(30
|
)
|
|
—
|
|
|
—
|
|
|
715
|
|
|||||
Other, net
|
(14,194
|
)
|
|
(189
|
)
|
|
(2,599
|
)
|
|
(3,921
|
)
|
|
(20,903
|
)
|
|||||
Interest expense, net of capitalized interest
|
(5,445
|
)
|
|
(372
|
)
|
|
(3,922
|
)
|
|
3,921
|
|
|
(5,818
|
)
|
|||||
Total other income (expense), net
|
(18,894
|
)
|
|
(591
|
)
|
|
(6,521
|
)
|
|
—
|
|
|
(26,006
|
)
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(28,493
|
)
|
|
(7,858
|
)
|
|
(12,908
|
)
|
|
—
|
|
|
(49,259
|
)
|
|||||
Income and mining tax (expense) benefit
|
(430
|
)
|
|
(489
|
)
|
|
(2,866
|
)
|
|
—
|
|
|
(3,785
|
)
|
|||||
Income (loss) from continuing operations
|
(28,923
|
)
|
|
(8,347
|
)
|
|
(15,774
|
)
|
|
—
|
|
|
(53,044
|
)
|
|||||
Equity income (loss) in consolidated subsidiaries
|
(24,122
|
)
|
|
(47
|
)
|
|
(174
|
)
|
|
24,343
|
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
NET INCOME (LOSS)
|
$
|
(53,045
|
)
|
|
$
|
(8,394
|
)
|
|
$
|
(15,948
|
)
|
|
$
|
24,343
|
|
|
$
|
(53,044
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on debt securities, net of tax
|
192
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
192
|
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
(52,853
|
)
|
|
$
|
(8,394
|
)
|
|
$
|
(15,948
|
)
|
|
$
|
24,343
|
|
|
$
|
(52,852
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
99,093
|
|
|
$
|
60,827
|
|
|
$
|
—
|
|
|
$
|
159,920
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales
(1)
|
—
|
|
|
68,267
|
|
|
33,292
|
|
|
—
|
|
|
101,559
|
|
|||||
Amortization
|
286
|
|
|
15,678
|
|
|
16,436
|
|
|
—
|
|
|
32,400
|
|
|||||
General and administrative
|
7,250
|
|
|
6
|
|
|
89
|
|
|
—
|
|
|
7,345
|
|
|||||
Exploration
|
466
|
|
|
4,582
|
|
|
4,743
|
|
|
—
|
|
|
9,791
|
|
|||||
Pre-development, reclamation, and other
|
1,030
|
|
|
1,922
|
|
|
2,078
|
|
|
—
|
|
|
5,030
|
|
|||||
Total costs and expenses
|
9,032
|
|
|
90,455
|
|
|
56,638
|
|
|
—
|
|
|
156,125
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Other, net
|
2,868
|
|
|
(4,603
|
)
|
|
5,509
|
|
|
(1,413
|
)
|
|
2,361
|
|
|||||
Interest expense, net of capitalized interest
|
(3,220
|
)
|
|
(264
|
)
|
|
(1,524
|
)
|
|
1,413
|
|
|
(3,595
|
)
|
|||||
Total other income (expense), net
|
(352
|
)
|
|
(4,867
|
)
|
|
3,985
|
|
|
—
|
|
|
(1,234
|
)
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(9,384
|
)
|
|
3,771
|
|
|
8,174
|
|
|
—
|
|
|
2,561
|
|
|||||
Income and mining tax (expense) benefit
|
(8,091
|
)
|
|
(574
|
)
|
|
(5,624
|
)
|
|
—
|
|
|
(14,289
|
)
|
|||||
Income (loss) from continuing operations
|
(17,475
|
)
|
|
3,197
|
|
|
2,550
|
|
|
—
|
|
|
(11,728
|
)
|
|||||
Equity income (loss) in consolidated subsidiaries
|
823
|
|
|
(1,755
|
)
|
|
(304
|
)
|
|
1,236
|
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
(4,924
|
)
|
|
—
|
|
|
(4,924
|
)
|
|||||
NET INCOME (LOSS)
|
$
|
(16,652
|
)
|
|
$
|
1,442
|
|
|
$
|
(2,678
|
)
|
|
$
|
1,236
|
|
|
$
|
(16,652
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on debt securities, net of tax
|
1,066
|
|
|
1,504
|
|
|
—
|
|
|
(1,504
|
)
|
|
1,066
|
|
|||||
Reclassification adjustments for impairment of equity securities, net of tax
|
—
|
|
|
(852
|
)
|
|
—
|
|
|
852
|
|
|
—
|
|
|||||
Reclassification adjustments for realized gain (loss) on sale of equity securities, net of tax
|
32
|
|
|
1,112
|
|
|
—
|
|
|
(1,112
|
)
|
|
32
|
|
|||||
Other comprehensive income (loss)
|
1,098
|
|
|
1,764
|
|
|
—
|
|
|
(1,764
|
)
|
|
1,098
|
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
(15,554
|
)
|
|
$
|
3,206
|
|
|
$
|
(2,678
|
)
|
|
$
|
(528
|
)
|
|
$
|
(15,554
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
281,762
|
|
|
$
|
200,287
|
|
|
$
|
—
|
|
|
$
|
482,049
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales
(1)
|
—
|
|
|
219,948
|
|
|
104,495
|
|
|
—
|
|
|
324,443
|
|
|||||
Amortization
|
714
|
|
|
43,876
|
|
|
46,830
|
|
|
—
|
|
|
91,420
|
|
|||||
General and administrative
|
24,113
|
|
|
15
|
|
|
55
|
|
|
—
|
|
|
24,183
|
|
|||||
Exploration
|
1,168
|
|
|
7,289
|
|
|
12,812
|
|
|
—
|
|
|
21,269
|
|
|||||
Pre-development, reclamation, and other
|
1,912
|
|
|
9,391
|
|
|
4,663
|
|
|
—
|
|
|
15,966
|
|
|||||
Total costs and expenses
|
27,907
|
|
|
280,519
|
|
|
168,855
|
|
|
—
|
|
|
477,281
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value adjustments, net
|
3,335
|
|
|
(428
|
)
|
|
|
|
|
—
|
|
|
2,907
|
|
|||||
Other, net
|
(4,890
|
)
|
|
187
|
|
|
(3,607
|
)
|
|
(11,536
|
)
|
|
(19,846
|
)
|
|||||
Interest expense, net of capitalized interest
|
(15,786
|
)
|
|
(1,092
|
)
|
|
(12,459
|
)
|
|
11,536
|
|
|
(17,801
|
)
|
|||||
Total other income (expense), net
|
(17,341
|
)
|
|
(1,333
|
)
|
|
(16,066
|
)
|
|
—
|
|
|
(34,740
|
)
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(45,248
|
)
|
|
(90
|
)
|
|
15,366
|
|
|
—
|
|
|
(29,972
|
)
|
|||||
Income and mining tax (expense) benefit
|
286
|
|
|
(2,997
|
)
|
|
(16,740
|
)
|
|
—
|
|
|
(19,451
|
)
|
|||||
Income (loss) from continuing operations
|
(44,962
|
)
|
|
(3,087
|
)
|
|
(1,374
|
)
|
|
—
|
|
|
(49,423
|
)
|
|||||
Equity income (loss) in consolidated subsidiaries
|
(4,922
|
)
|
|
(113
|
)
|
|
(590
|
)
|
|
5,625
|
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
1,010
|
|
|
(284
|
)
|
|
(176
|
)
|
|
—
|
|
|
550
|
|
|||||
NET INCOME (LOSS)
|
$
|
(48,874
|
)
|
|
$
|
(3,484
|
)
|
|
$
|
(2,140
|
)
|
|
$
|
5,625
|
|
|
$
|
(48,873
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on debt securities, net of tax
|
(173
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(173
|
)
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
(49,047
|
)
|
|
$
|
(3,484
|
)
|
|
$
|
(2,140
|
)
|
|
$
|
5,625
|
|
|
$
|
(49,046
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
301,658
|
|
|
$
|
193,356
|
|
|
$
|
—
|
|
|
$
|
495,014
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales
(1)
|
—
|
|
|
207,385
|
|
|
110,893
|
|
|
—
|
|
|
318,278
|
|
|||||
Amortization
|
908
|
|
|
49,617
|
|
|
51,302
|
|
|
—
|
|
|
101,827
|
|
|||||
General and administrative
|
24,316
|
|
|
26
|
|
|
153
|
|
|
—
|
|
|
24,495
|
|
|||||
Exploration
|
1,197
|
|
|
9,526
|
|
|
12,133
|
|
|
—
|
|
|
22,856
|
|
|||||
Pre-development, reclamation, and other
|
1,803
|
|
|
5,593
|
|
|
5,556
|
|
|
—
|
|
|
12,952
|
|
|||||
Total costs and expenses
|
28,224
|
|
|
272,147
|
|
|
180,037
|
|
|
—
|
|
|
480,408
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on debt extinguishments
|
(9,342
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,342
|
)
|
|||||
Fair value adjustments, net
|
—
|
|
|
(864
|
)
|
|
—
|
|
|
—
|
|
|
(864
|
)
|
|||||
Other, net
|
20,090
|
|
|
3,332
|
|
|
7,951
|
|
|
(4,239
|
)
|
|
27,134
|
|
|||||
Interest expense, net of capitalized interest
|
(9,876
|
)
|
|
(703
|
)
|
|
(4,578
|
)
|
|
4,239
|
|
|
(10,918
|
)
|
|||||
Total other income (expense), net
|
872
|
|
|
1,765
|
|
|
3,373
|
|
|
—
|
|
|
6,010
|
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(27,352
|
)
|
|
31,276
|
|
|
16,692
|
|
|
—
|
|
|
20,616
|
|
|||||
Income and mining tax (expense) benefit
|
(3,108
|
)
|
|
(3,946
|
)
|
|
(16,986
|
)
|
|
—
|
|
|
(24,040
|
)
|
|||||
Income (loss) from continuing operations
|
(30,460
|
)
|
|
27,330
|
|
|
(294
|
)
|
|
—
|
|
|
(3,424
|
)
|
|||||
Equity income (loss) in consolidated subsidiaries
|
21,516
|
|
|
(546
|
)
|
|
(609
|
)
|
|
(20,361
|
)
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
(5,520
|
)
|
|
—
|
|
|
(5,520
|
)
|
|||||
NET INCOME (LOSS)
|
$
|
(8,944
|
)
|
|
$
|
26,784
|
|
|
$
|
(6,423
|
)
|
|
$
|
(20,361
|
)
|
|
$
|
(8,944
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on debt and equity securities, net of tax
|
(1,134
|
)
|
|
756
|
|
|
—
|
|
|
(756
|
)
|
|
(1,134
|
)
|
|||||
Reclassification adjustments for impairment of equity securities, net of tax
|
426
|
|
|
(426
|
)
|
|
—
|
|
|
426
|
|
|
426
|
|
|||||
Reclassification adjustments for realized loss on sale of equity securities, net of tax
|
1,300
|
|
|
540
|
|
|
—
|
|
|
(540
|
)
|
|
1,300
|
|
|||||
Other comprehensive income (loss)
|
592
|
|
|
870
|
|
|
—
|
|
|
(870
|
)
|
|
592
|
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
(8,352
|
)
|
|
$
|
27,654
|
|
|
$
|
(6,423
|
)
|
|
$
|
(21,231
|
)
|
|
$
|
(8,352
|
)
|
•
|
The NSR commencing immediately upon the closing of the Transaction, valued at
$7.1 million
.
|
•
|
Pre-closing VAT refunds valued at
$12.7 million
that will be collected or received by Manquiri in the future will be paid to Coeur (net of collection costs).
|
•
|
The Manquiri Notes Receivable valued at
$26.9 million
payable to Coeur and certain of its subsidiaries representing Manquiri’s cash and cash equivalents on the date of closing of the Manquiri Divestiture, and providing for repayment beginning in October 2018.
|
•
|
The Company recognized a liability of approximately
$5.7 million
for certain post-closing covenants, guaranties and indemnification obligations on the part of the Company pursuant to the Agreement
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Revenue
|
$
|
—
|
|
|
$
|
16,043
|
|
|
$
|
12,346
|
|
|
$
|
60,441
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
||||||||
Costs applicable to sales
(1)
|
—
|
|
|
17,365
|
|
|
12,269
|
|
|
58,979
|
|
||||
Amortization
|
—
|
|
|
1,430
|
|
|
—
|
|
|
5,053
|
|
||||
General and administrative
|
—
|
|
|
67
|
|
|
41
|
|
|
92
|
|
||||
Exploration
|
—
|
|
|
23
|
|
|
—
|
|
|
23
|
|
||||
Pre-development, reclamation, and other
|
—
|
|
|
2,931
|
|
|
265
|
|
|
3,956
|
|
||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
||||||||
Interest expense, net of capitalized interest
|
—
|
|
|
(11
|
)
|
|
(3
|
)
|
|
(23
|
)
|
||||
Other, net
|
—
|
|
|
804
|
|
|
(260
|
)
|
|
1,305
|
|
||||
Pretax profit (loss) on discontinued operations related to major classes of pretax profit (loss)
|
—
|
|
|
(4,980
|
)
|
|
(492
|
)
|
|
(6,380
|
)
|
||||
Pretax gain on the disposal of the discontinued operation
|
—
|
|
|
—
|
|
|
1,525
|
|
|
—
|
|
||||
Total pretax gain or loss on discontinued operations
|
—
|
|
|
(4,980
|
)
|
|
1,033
|
|
|
(6,380
|
)
|
||||
Income and mining tax (expense) benefit
|
—
|
|
|
56
|
|
|
(483
|
)
|
|
860
|
|
||||
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
(4,924
|
)
|
|
$
|
550
|
|
|
$
|
(5,520
|
)
|
In thousands
|
September 30, 2018
|
|
December 31, 2017
|
||||
Accrued salaries and wages
|
$
|
18,677
|
|
|
$
|
26,559
|
|
Income and mining taxes
|
1,252
|
|
|
25,788
|
|
||
Silvertip contingent consideration
|
24,847
|
|
|
24,393
|
|
||
Accrued operating costs
|
11,883
|
|
|
12,323
|
|
||
Taxes other than income and mining
|
3,378
|
|
|
4,354
|
|
||
Accrued interest payable
|
5,363
|
|
|
1,513
|
|
||
Accrued liabilities and other
|
$
|
65,400
|
|
|
$
|
94,930
|
|
In thousands
|
September 30, 2018
|
|
September 30, 2017
|
||||
Cash and cash equivalents
|
$
|
104,746
|
|
|
$
|
195,654
|
|
Restricted cash equivalents
|
12,534
|
|
|
11,360
|
|
||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
117,280
|
|
|
207,014
|
|
•
|
Average realized prices of
$14.68
per silver ounce,
$1,150
per gold ounce,
$0.94
per zinc pound and
$0.85
per lead pound
|
•
|
Production from continuing operations of
8.2 million
silver equivalent ounces (
10.1 million
silver equivalent ounces produced (average spot)), consisting of
2.9 million
silver ounces,
87,539
gold ounces,
1.1 million
zinc pounds and
0.4 million
lead pounds
|
•
|
Sales from continuing operations of
8.5 million
silver equivalent ounces (
10.4 million
silver equivalent ounces sold (average spot)), consisting of
2.9 million
silver ounces,
89,609
gold ounces,
1.8 million
zinc pounds and
1.2 million
lead pounds
|
•
|
Net
loss
from continuing operations of
$53.0 million
, or
$0.29
per share, and adjusted net
loss
of
$19.7 million
, or
$0.11
per share, (see “Non-GAAP Financial Performance Measures”)
|
•
|
Costs applicable to sales from continuing operations were
$10.55
per average spot silver equivalent ounce (
$12.32
per silver equivalent ounce) and
$1,011
per gold equivalent ounce (see “Non-GAAP Financial Performance Measures”)
|
•
|
All-in sustaining costs from continuing operations were
$15.33
per average spot silver equivalent ounce (
$18.78
per silver equivalent ounce) (see “Non-GAAP Financial Performance Measures”)
|
•
|
Operating cash flow used in continuing operations of
$5.8 million
and adjusted EBITDA from continuing operations of
$24.7 million
(see “Non-GAAP Financial Performance Measures”)
|
•
|
Cash and cash equivalents of
$104.7 million
at
September 30, 2018
|
•
|
Silvertip commenced commercial production on September 1, 2018
|
•
|
Acquired Northern Empire for total consideration valued at approximately
$63.9 million
(closed October 1, 2018) as more fully discussed above.
|
•
|
Announced agreement to acquire assets from Alio Gold located adjacent to Rochester including the Lincoln Hill Project as more fully discussed above.
|
•
|
Expanded the Facility capacity to provide additional balance sheet flexibility as more fully discussed above.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Financial Results from Continuing Operations:
|
|
|
|
|
|
|
|
||||||||
Revenue
|
$
|
148,795
|
|
|
$
|
159,920
|
|
|
$
|
482,049
|
|
|
$
|
495,014
|
|
Net income (loss)
|
$
|
(53,044
|
)
|
|
$
|
(11,728
|
)
|
|
$
|
(49,423
|
)
|
|
$
|
(3,424
|
)
|
Net income (loss) per share, diluted
|
$
|
(0.29
|
)
|
|
$
|
(0.07
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.02
|
)
|
Adjusted net income (loss)
(1)
|
$
|
(19,653
|
)
|
|
$
|
(15,342
|
)
|
|
$
|
(18,251
|
)
|
|
$
|
(9,920
|
)
|
Adjusted net income (loss) per share, diluted
(1)
|
$
|
(0.11
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.06
|
)
|
EBITDA
(1)
|
$
|
(12,257
|
)
|
|
$
|
38,556
|
|
|
$
|
79,249
|
|
|
$
|
133,361
|
|
Adjusted EBITDA
(1)
|
$
|
24,671
|
|
|
$
|
40,245
|
|
|
$
|
121,397
|
|
|
$
|
126,679
|
|
Operating Results from Continuing Operations:
|
|
|
|
|
|
|
|
||||||||
Silver ounces produced
(3)
|
2,886,117
|
|
|
2,994,723
|
|
|
9,272,126
|
|
|
8,403,013
|
|
||||
Gold ounces produced
|
87,539
|
|
|
93,293
|
|
|
266,974
|
|
|
264,330
|
|
||||
Zinc pounds produced
(3)
|
1,099,408
|
|
|
—
|
|
|
1,099,408
|
|
|
—
|
|
||||
Lead pounds produced
(3)
|
413,285
|
|
|
—
|
|
|
413,285
|
|
|
—
|
|
||||
Silver equivalent ounces produced
|
8,225,086
|
|
|
8,592,303
|
|
|
25,377,195
|
|
|
24,262,813
|
|
||||
Silver equivalent ounces produced (average spot price)
|
10,068,517
|
|
|
10,074,729
|
|
|
30,644,015
|
|
|
27,672,670
|
|
||||
Silver ounces sold
|
2,931,513
|
|
|
2,865,844
|
|
|
9,295,230
|
|
|
8,880,340
|
|
||||
Gold ounces sold
|
89,609
|
|
|
89,972
|
|
|
271,217
|
|
|
287,040
|
|
||||
Zinc pounds sold
|
1,772,023
|
|
|
—
|
|
|
1,772,023
|
|
|
—
|
|
||||
Lead pounds sold
|
1,230,266
|
|
|
—
|
|
|
1,230,266
|
|
|
—
|
|
||||
Silver equivalent ounces sold
|
8,475,883
|
|
|
8,264,174
|
|
|
25,736,073
|
|
|
26,102,711
|
|
||||
Silver equivalent ounces sold (average spot price)
|
10,383,913
|
|
|
9,693,819
|
|
|
31,137,842
|
|
|
29,805,556
|
|
||||
Average realized price per silver ounce
|
$
|
14.68
|
|
|
$
|
16.86
|
|
|
$
|
15.99
|
|
|
$
|
17.12
|
|
Average realized price per gold ounce
|
$
|
1,150
|
|
|
$
|
1,240
|
|
|
$
|
1,219
|
|
|
$
|
1,195
|
|
Average realized price per zinc pound
|
$
|
0.94
|
|
|
$
|
—
|
|
|
$
|
0.94
|
|
|
$
|
—
|
|
Average realized price per lead pound
|
$
|
0.85
|
|
|
$
|
—
|
|
|
$
|
0.85
|
|
|
$
|
—
|
|
Costs applicable to sales per silver equivalent ounce
(1)
|
$
|
12.32
|
|
|
$
|
11.16
|
|
|
$
|
10.52
|
|
|
$
|
11.22
|
|
Costs applicable to sales per average spot silver equivalent ounce
(1)
|
$
|
10.55
|
|
|
$
|
10.00
|
|
|
$
|
9.13
|
|
|
$
|
10.20
|
|
Costs applicable to sales per gold equivalent ounce
(1)
|
$
|
1,011
|
|
|
$
|
845
|
|
|
$
|
1,008
|
|
|
$
|
831
|
|
All-in sustaining costs per silver equivalent ounce
(1)
|
$
|
18.78
|
|
|
$
|
17.43
|
|
|
$
|
17.94
|
|
|
$
|
16.55
|
|
All-in sustaining costs per average spot silver equivalent ounce
(1)
|
$
|
15.33
|
|
|
$
|
14.86
|
|
|
$
|
14.83
|
|
|
$
|
14.51
|
|
Financial and Operating Results from Discontinued Operations:
(2)
|
|
|
|
|
|
|
|
||||||||
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
(4,924
|
)
|
|
$
|
550
|
|
|
$
|
(5,520
|
)
|
Silver ounces produced
|
—
|
|
|
956,893
|
|
|
643,078
|
|
|
3,455,961
|
|
||||
Gold ounces produced
|
—
|
|
|
—
|
|
|
78
|
|
|
—
|
|
||||
Silver equivalent ounces produced
|
—
|
|
|
956,893
|
|
|
647,758
|
|
|
3,455,961
|
|
||||
Silver ounces sold
|
—
|
|
|
951,219
|
|
|
704,479
|
|
|
3,497,263
|
|
||||
Gold ounces sold
|
—
|
|
|
—
|
|
|
292
|
|
|
—
|
|
||||
Silver equivalent ounces sold
|
—
|
|
|
951,219
|
|
|
721,999
|
|
|
3,497,263
|
|
(1)
|
See “Non-GAAP Financial Performance Measures.”
|
(2)
|
Reported production and financial results include operations through February 28, 2018.
|
(3)
|
Prior to September 1, 2018 commercial production date the Silvertip mine produced 0.2 million ounces of silver, 2.6 million pounds of zinc, and 1.8 million pounds of lead which are excluded from production numbers presented, unless otherwise noted.
|
|
Three months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
In thousands
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
||||||||
United States
|
$
|
(35,250
|
)
|
$
|
(908
|
)
|
|
$
|
(6,055
|
)
|
$
|
(2,892
|
)
|
Argentina
|
(2,058
|
)
|
(75
|
)
|
|
738
|
|
(366
|
)
|
||||
Canada
|
(13,194
|
)
|
4,432
|
|
|
—
|
|
—
|
|
||||
Mexico
|
1,419
|
|
(7,234
|
)
|
|
3,210
|
|
(9,057
|
)
|
||||
Other jurisdictions
|
(176
|
)
|
—
|
|
|
4,668
|
|
(1,974
|
)
|
||||
|
$
|
(49,259
|
)
|
$
|
(3,785
|
)
|
|
$
|
2,561
|
|
$
|
(14,289
|
)
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
In thousands
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
||||||||
United States
|
$
|
(45,397
|
)
|
$
|
(2,700
|
)
|
|
$
|
8,036
|
|
$
|
(4,072
|
)
|
Argentina
|
(1,985
|
)
|
(172
|
)
|
|
281
|
|
1,704
|
|
||||
Canada
|
(17,103
|
)
|
6,476
|
|
|
—
|
|
—
|
|
||||
Mexico
|
35,088
|
|
(23,055
|
)
|
|
9,665
|
|
(23,745
|
)
|
||||
Other jurisdictions
|
(575
|
)
|
—
|
|
|
2,634
|
|
2,073
|
|
||||
|
$
|
(29,972
|
)
|
$
|
(19,451
|
)
|
|
$
|
20,616
|
|
$
|
(24,040
|
)
|
|
Silver
|
Gold
|
Zinc
|
Lead
|
Silver Equivalent
1
|
|
(K oz)
|
(oz)
|
(K lbs)
|
(K lbs)
|
(K oz)
|
Palmarejo
|
7,500 - 7,900
|
115,000 - 120,000
|
—
|
—
|
14,400 - 15,100
|
Rochester
|
4,800 - 5,200
|
48,000 - 52,000
|
—
|
—
|
7,680 - 8,320
|
Kensington
|
—
|
115,000 - 120,000
|
—
|
—
|
6,900 - 7,200
|
Wharf
|
—
|
85,000 - 90,000
|
—
|
—
|
5,100 - 5,400
|
Silvertip
|
700 - 1,200
|
—
|
13,000 - 23,000
|
11,000 - 18,000
|
2,030 - 3,480
|
Total
|
13,000 - 14,300
|
363,000 - 382,000
|
13,000 - 23,000
|
11,000 - 18,000
|
36,110 - 39,500
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||||||
Tons milled
|
300,116
|
|
|
413,086
|
|
1,004,082
|
|
|
1,108,897
|
|
||||
Silver ounces produced
|
1,543,948
|
|
|
1,907,548
|
|
5,622,710
|
|
|
4,894,910
|
|
||||
Gold ounces produced
|
27,885
|
|
|
28,948
|
|
91,483
|
|
|
84,032
|
|
||||
Silver equivalent ounces produced
|
3,217,048
|
|
|
3,644,428
|
|
11,111,690
|
|
|
9,936,830
|
|
||||
Silver equivalent ounces produced (average spot price)
|
3,795,941
|
|
|
4,104,412
|
|
12,907,501
|
|
|
11,020,843
|
|
||||
Costs applicable to sales per silver equivalent oz
(1)
|
$
|
9.39
|
|
|
$
|
9.82
|
|
$
|
8.29
|
|
|
$
|
10.19
|
|
Costs applicable to sales per average spot silver equivalent oz
(1)
|
$
|
7.93
|
|
|
$
|
8.73
|
|
$
|
7.14
|
|
|
$
|
9.17
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||||||
Tons placed
|
4,061,082
|
|
|
4,262,011
|
|
12,495,241
|
|
|
12,268,819
|
|
||||
Silver ounces produced
|
1,289,640
|
|
|
1,069,945
|
|
3,571,740
|
|
|
3,353,608
|
|
||||
Gold ounces produced
|
14,702
|
|
|
10,955
|
|
38,462
|
|
|
32,056
|
|
||||
Silver equivalent ounces produced
|
2,171,760
|
|
|
1,727,245
|
|
5,879,460
|
|
|
5,276,968
|
|
||||
Silver equivalent ounces produced (average spot price)
|
2,476,974
|
|
|
1,901,320
|
|
6,634,469
|
|
|
5,690,490
|
|
||||
Costs applicable to sales per silver equivalent oz
(1)
|
$
|
13.10
|
|
|
$
|
13.91
|
|
$
|
13.36
|
|
|
$
|
13.31
|
|
Costs applicable to sales per average spot silver equivalent oz
(1)
|
$
|
11.48
|
|
|
$
|
12.66
|
|
$
|
11.84
|
|
|
$
|
12.32
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||||||
Tons milled
|
10,652
|
|
|
—
|
|
10,652
|
|
|
—
|
|
||||
Silver ounces produced
(2)
|
39,976
|
|
|
—
|
|
39,976
|
|
|
—
|
|
||||
Zinc pounds produced
(2)
|
1,099,408
|
|
|
—
|
|
1,099,408
|
|
|
—
|
|
||||
Lead pounds produced
(2)
|
413,285
|
|
|
—
|
|
413,285
|
|
|
—
|
|
||||
Silver equivalent ounces produced
|
126,605
|
|
|
—
|
|
126,605
|
|
|
—
|
|
||||
Silver equivalent ounces produced (average spot price)
|
152,726
|
|
|
—
|
|
152,726
|
|
|
—
|
|
||||
Costs applicable to sales per silver equivalent oz
(1)
|
$
|
43.26
|
|
|
$
|
—
|
|
$
|
43.26
|
|
|
$
|
—
|
|
Costs applicable to sales per average spot silver equivalent oz
(1)
|
$
|
36.69
|
|
|
$
|
—
|
|
$
|
33.49
|
|
|
$
|
—
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
(2)
|
Prior to September 1, 2018 commercial production date the Silvertip mine produced 0.2 million ounces of silver, 2.6 million pounds of zinc, and 1.8 million pounds of lead which are excluded from production numbers presented, unless otherwise noted.
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||||||
Tons placed
|
1,127,391
|
|
|
1,150,308
|
|
3,279,606
|
|
|
3,435,656
|
|
||||
Gold ounces produced
|
19,437
|
|
|
25,849
|
|
59,880
|
|
|
68,080
|
|
||||
Silver ounces produced
|
12,553
|
|
|
14,817
|
|
37,700
|
|
|
47,469
|
|
||||
Gold equivalent ounces produced
(1)
|
19,646
|
|
|
26,096
|
|
60,508
|
|
|
68,871
|
|
||||
Costs applicable to sales per gold equivalent oz
(1)
|
$
|
895
|
|
|
$
|
720
|
|
$
|
863
|
|
|
$
|
704
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
||||||||
Tons milled
|
163,603
|
|
|
172,038
|
|
491,060
|
|
|
501,096
|
|
||||
Gold ounces produced
|
25,515
|
|
|
27,541
|
|
77,149
|
|
|
80,162
|
|
||||
Costs applicable to sales/oz
(1)
|
$
|
1,101
|
|
|
$
|
948
|
|
$
|
1,117
|
|
|
$
|
931
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||
|
2018
|
|
2017
|
2018
|
|
2017
|
|||||||
Tons milled
|
—
|
|
|
—
|
|
—
|
|
|
133,905
|
|
|||
Silver ounces produced
|
—
|
|
|
2,413
|
|
—
|
|
|
107,026
|
|
|||
Costs applicable to sales/oz
(1)
|
$
|
—
|
|
|
$
|
4.86
|
|
$
|
—
|
|
|
6.95
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Consolidated silver equivalent ounces sold
|
8,475,883
|
|
|
8,264,174
|
|
|
25,736,073
|
|
|
26,102,711
|
|
||||
Average realized price per consolidated silver equivalent ounce
(1)
|
$
|
17.56
|
|
|
$
|
19.35
|
|
|
$
|
18.73
|
|
|
$
|
18.96
|
|
Costs applicable to sales per consolidated silver equivalent ounce
(2)
|
(13.79
|
)
|
|
(12.29
|
)
|
|
(12.61
|
)
|
|
(12.19
|
)
|
||||
Operating margin per consolidated silver equivalent ounce
|
$
|
3.77
|
|
|
$
|
7.06
|
|
|
$
|
6.12
|
|
|
$
|
6.77
|
|
(1)
|
Calculated by dividing the Company’s total metal sales by total silver equivalent ounces (based on a historical 60:1 ratio of silver ounces to gold ounces, 0.06:1 ratio of silver ounces to zinc pounds and 0.05:1 ratio of silver ounces to lead pounds).
|
(2)
|
See Non-GAAP Financial Performance Measures.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Cash flow before changes in operating assets and liabilities
|
$
|
12,933
|
|
|
$
|
25,150
|
|
|
$
|
87,869
|
|
|
$
|
95,674
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
||||||||
Receivables
|
(5,930
|
)
|
|
6,289
|
|
|
(16,509
|
)
|
|
9,754
|
|
||||
Prepaid expenses and other
|
1,377
|
|
|
(1,332
|
)
|
|
3,868
|
|
|
(2,177
|
)
|
||||
Inventories
|
(8,156
|
)
|
|
(2,282
|
)
|
|
(19,630
|
)
|
|
8,080
|
|
||||
Accounts payable and accrued liabilities
|
5,565
|
|
|
9,484
|
|
|
(35,562
|
)
|
|
(5,982
|
)
|
||||
Cash provided by continuing operating activities
|
$
|
5,789
|
|
|
$
|
37,309
|
|
|
$
|
20,036
|
|
|
$
|
105,349
|
|
1.
|
Identify the contract with the customer
|
2.
|
Identify the performance obligations
|
3.
|
Determine the transaction price
|
4.
|
Allocate the transaction price to the performance obligations
|
5.
|
Recognize revenue when (or as) the entity satisfies a performance obligation
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands except per share amounts
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss)
|
$
|
(53,044
|
)
|
|
$
|
(16,652
|
)
|
|
$
|
(48,873
|
)
|
|
$
|
(8,944
|
)
|
(Income) loss from discontinued operations, net of tax
|
—
|
|
|
4,924
|
|
|
(550
|
)
|
|
5,520
|
|
||||
Fair value adjustments, net
|
(715
|
)
|
|
—
|
|
|
(2,907
|
)
|
|
864
|
|
||||
Impairment of equity and debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
426
|
|
||||
Gain on sale of Joaquin project
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,138
|
)
|
||||
(Gain) loss on sale of assets and securities
|
28
|
|
|
(2,051
|
)
|
|
(317
|
)
|
|
(498
|
)
|
||||
Gain on repurchase of Rochester royalty
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,332
|
)
|
||||
(Gain) loss on debt extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
9,342
|
|
||||
Mexico inflation adjustment
|
—
|
|
|
—
|
|
|
(1,939
|
)
|
|
—
|
|
||||
Transaction costs
|
1,049
|
|
|
819
|
|
|
1,049
|
|
|
819
|
|
||||
Interest income on notes receivables
|
(628
|
)
|
|
—
|
|
|
(1,450
|
)
|
|
—
|
|
||||
Manquiri sale consideration write-down
|
18,599
|
|
|
—
|
|
|
18,599
|
|
|
—
|
|
||||
Silvertip start-up write-down
|
8,746
|
|
|
—
|
|
|
8,746
|
|
|
—
|
|
||||
Rochester In-Pit crusher write-down
|
3,441
|
|
|
—
|
|
|
3,441
|
|
|
—
|
|
||||
Foreign exchange loss (gain)
|
6,062
|
|
|
(1,392
|
)
|
|
9,141
|
|
|
5,205
|
|
||||
Tax effect of adjustments
(1)
|
(3,191
|
)
|
|
(990
|
)
|
|
(3,191
|
)
|
|
816
|
|
||||
Adjusted net income (loss)
|
$
|
(19,653
|
)
|
|
$
|
(15,342
|
)
|
|
$
|
(18,251
|
)
|
|
$
|
(9,920
|
)
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income (loss) per share - Basic
|
$
|
(0.11
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.06
|
)
|
Adjusted net income (loss) per share - Diluted
|
$
|
(0.11
|
)
|
|
$
|
(0.09
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
(0.06
|
)
|
(1)
|
For the three months ended September 30, 2018, tax effect of adjustments of
$3.2 million
(10%) is primarily related to the write-down of Silvertip start-up costs.
|
(2)
|
For the nine months ended September 30, 2018, tax effect of adjustments of
$3.2 million
(13%) is primarily related to the write-down of Silvertip start-up costs.
|
|
Three months ended September 30,
|
|
Nine months ended September 30,
|
||||||||||||
In thousands except per share amounts
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income (loss)
|
$
|
(53,044
|
)
|
|
$
|
(16,652
|
)
|
|
$
|
(48,873
|
)
|
|
$
|
(8,944
|
)
|
(Income) loss from discontinued operations, net of tax
|
—
|
|
|
4,924
|
|
|
(550
|
)
|
|
5,520
|
|
||||
Interest expense, net of capitalized interest
|
5,818
|
|
|
3,595
|
|
|
17,801
|
|
|
10,918
|
|
||||
Income tax provision (benefit)
|
3,785
|
|
|
14,289
|
|
|
19,451
|
|
|
24,040
|
|
||||
Amortization
|
31,184
|
|
|
32,400
|
|
|
91,420
|
|
|
101,827
|
|
||||
EBITDA
|
(12,257
|
)
|
|
38,556
|
|
|
79,249
|
|
|
133,361
|
|
||||
Fair value adjustments, net
|
(715
|
)
|
|
—
|
|
|
(2,907
|
)
|
|
864
|
|
||||
Impairment of equity and debt securities
|
—
|
|
|
—
|
|
|
—
|
|
|
426
|
|
||||
Foreign exchange (gain) loss
|
3,104
|
|
|
39
|
|
|
7,083
|
|
|
(1,953
|
)
|
||||
Gain on sale of Joaquin project
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,138
|
)
|
||||
(Gain) loss on sale of assets and securities
|
28
|
|
|
(2,051
|
)
|
|
(317
|
)
|
|
(498
|
)
|
||||
Gain on repurchase of Rochester royalty
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,332
|
)
|
||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
9,342
|
|
||||
Mexico inflation adjustment
|
—
|
|
|
—
|
|
|
(1,939
|
)
|
|
—
|
|
||||
Transaction costs
|
1,049
|
|
|
819
|
|
|
1,049
|
|
|
819
|
|
||||
Interest income on notes receivables
|
(628
|
)
|
|
—
|
|
|
(1,450
|
)
|
|
—
|
|
||||
Manquiri sale consideration write-down
|
18,599
|
|
|
—
|
|
|
18,599
|
|
|
—
|
|
||||
Silvertip start-up write-down
|
8,746
|
|
|
—
|
|
|
8,746
|
|
|
—
|
|
||||
Rochester In-Pit crusher write-down
|
3,441
|
|
|
—
|
|
|
3,441
|
|
|
—
|
|
||||
Asset retirement obligation accretion
|
2,883
|
|
|
2,223
|
|
|
8,369
|
|
|
6,508
|
|
||||
Inventory adjustments and write-downs
|
421
|
|
|
659
|
|
|
1,474
|
|
|
1,280
|
|
||||
Adjusted EBITDA
|
$
|
24,671
|
|
|
$
|
40,245
|
|
|
$
|
121,397
|
|
|
$
|
126,679
|
|
|
|
Silver
|
|
Gold
|
|
Total
|
||||||||||||||||||||||||||
In thousands except per ounce amounts
|
|
Palmarejo
|
|
Rochester
|
|
Silvertip
|
|
Total
|
|
Kensington
|
|
Wharf
|
|
Total
|
|
|||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
|
$
|
46,348
|
|
|
$
|
32,842
|
|
|
$
|
12,608
|
|
|
$
|
91,798
|
|
|
$
|
35,153
|
|
|
$
|
20,857
|
|
|
$
|
56,010
|
|
|
$
|
147,808
|
|
Amortization
|
|
14,794
|
|
|
5,294
|
|
|
1,073
|
|
|
21,161
|
|
|
6,912
|
|
|
2,878
|
|
|
9,790
|
|
|
30,951
|
|
||||||||
Costs applicable to sales
|
|
$
|
31,554
|
|
|
$
|
27,548
|
|
|
$
|
11,535
|
|
|
$
|
70,637
|
|
|
$
|
28,241
|
|
|
$
|
17,979
|
|
|
$
|
46,220
|
|
|
$
|
116,857
|
|
Silver equivalent ounces sold
|
|
3,361,893
|
|
|
2,103,584
|
|
|
266,666
|
|
|
5,732,143
|
|
|
|
|
|
|
|
|
8,475,883
|
|
|||||||||||
Gold equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
25,648
|
|
|
20,081
|
|
|
45,729
|
|
|
|
|||||||||||||
Costs applicable to sales per ounce
|
|
$
|
9.39
|
|
|
$
|
13.10
|
|
|
$
|
43.26
|
|
|
$
|
12.32
|
|
|
$
|
1,101
|
|
|
$
|
895
|
|
|
$
|
1,011
|
|
|
$
|
13.79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Costs applicable to sales per average spot ounce
|
|
$
|
7.93
|
|
|
$
|
11.48
|
|
|
$
|
36.69
|
|
|
$
|
10.55
|
|
|
|
|
|
|
|
|
$
|
11.25
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
116,857
|
|
||||||||||||||
Treatment and refining costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,551
|
|
|||||||||||||||
Sustaining capital
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,236
|
|
|||||||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,729
|
|
|||||||||||||||
Exploration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,157
|
|
|||||||||||||||
Reclamation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,545
|
|
|||||||||||||||
Project/pre-development costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,137
|
|
|||||||||||||||
All-in sustaining costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
159,212
|
|
||||||||||||||
Silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,732,143
|
|
|||||||||||||||
Kensington and Wharf silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
2,743,740
|
|
|||||||||||||||||||
Consolidated silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,475,883
|
|
|||||||||||||||||
All-in sustaining costs per silver equivalent ounce
|
|
|
|
|
|
|
|
|
|
|
|
$
|
18.78
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated silver equivalent ounces sold (average spot)
|
|
|
|
|
|
|
|
|
|
|
|
10,385,649
|
|
|||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15.33
|
|
(1)
|
Excludes development capital for Jualin and Silvertip.
|
|
|
Silver
|
|
Gold
|
|
|
||||||||||||||||||||||||||
In thousands except per ounce amounts
|
|
Palmarejo
|
|
Rochester
|
|
Endeavor
|
|
Total
|
|
Kensington
|
|
Wharf
|
|
Total
|
|
Total
|
||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
|
$
|
49,669
|
|
|
$
|
27,866
|
|
|
$
|
59
|
|
|
$
|
77,594
|
|
|
$
|
35,522
|
|
|
$
|
20,553
|
|
|
$
|
56,075
|
|
|
$
|
133,669
|
|
Amortization
|
|
16,414
|
|
|
4,591
|
|
|
20
|
|
|
21,025
|
|
|
7,864
|
|
|
3,223
|
|
|
11,087
|
|
|
32,112
|
|
||||||||
Costs applicable to sales
|
|
$
|
33,255
|
|
|
$
|
23,275
|
|
|
$
|
39
|
|
|
$
|
56,569
|
|
|
$
|
27,658
|
|
|
$
|
17,330
|
|
|
$
|
44,988
|
|
|
$
|
101,557
|
|
Silver equivalent ounces sold
|
|
3,386,963
|
|
|
1,673,704
|
|
|
8,027
|
|
|
5,068,694
|
|
|
|
|
|
|
|
|
8,264,174
|
|
|||||||||||
Gold equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
29,173
|
|
|
24,085
|
|
|
53,258
|
|
|
|
|||||||||||||
Costs applicable to sales per ounce
|
|
$
|
9.82
|
|
|
$
|
13.91
|
|
|
$
|
4.86
|
|
|
$
|
11.16
|
|
|
$
|
948
|
|
|
$
|
720
|
|
|
$
|
845
|
|
|
$
|
12.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Costs applicable to sales per average spot ounce
|
|
$
|
8.73
|
|
|
$
|
12.66
|
|
|
|
|
$
|
10.00
|
|
|
|
|
|
|
|
|
$
|
10.47
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
101,557
|
|
||||||||||||||
Treatment and refining costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,408
|
|
|||||||||||||||
Sustaining capital
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,126
|
|
|||||||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7,345
|
|
|||||||||||||||
Exploration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,791
|
|
|||||||||||||||
Reclamation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,915
|
|
|||||||||||||||
Project/pre-development costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,979
|
|
|||||||||||||||
All-in sustaining costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
144,121
|
|
||||||||||||||
Silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,068,694
|
|
|||||||||||||||
Kensington and Wharf silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
3,195,480
|
|
|||||||||||||||||||
Consolidated silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,264,174
|
|
|||||||||||||||||
All-in sustaining costs per silver equivalent ounce
|
|
|
|
|
|
|
|
|
|
|
|
$
|
17.43
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated silver equivalent ounces sold (average spot)
|
|
|
|
|
|
|
|
|
|
|
|
9,698,587
|
|
|||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14.86
|
|
(1)
|
Excludes development capital for Jualin, Guadalupe South Portal and Rochester expansion permitting.
|
|
|
Silver
|
|
Gold
|
|
Total
|
||||||||||||||||||||||||||
In thousands except per ounce amounts
|
|
Palmarejo
|
|
Rochester
|
|
Silvertip
|
|
Total
|
|
Kensington
|
|
Wharf
|
|
Total
|
|
|||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
|
$
|
138,712
|
|
|
$
|
91,222
|
|
|
$
|
12,608
|
|
|
$
|
242,542
|
|
|
$
|
111,168
|
|
|
$
|
61,434
|
|
|
$
|
172,602
|
|
|
$
|
415,144
|
|
Amortization
|
|
45,752
|
|
|
14,918
|
|
|
1,073
|
|
|
61,743
|
|
|
20,070
|
|
|
8,888
|
|
|
28,958
|
|
|
90,701
|
|
||||||||
Costs applicable to sales
|
|
$
|
92,960
|
|
|
$
|
76,304
|
|
|
$
|
11,535
|
|
|
$
|
180,799
|
|
|
$
|
91,098
|
|
|
$
|
52,546
|
|
|
$
|
143,644
|
|
|
$
|
324,443
|
|
Silver equivalent ounces sold
|
|
11,210,084
|
|
|
5,711,663
|
|
|
266,666
|
|
|
17,188,413
|
|
|
|
|
|
|
|
|
25,736,073
|
|
|||||||||||
Gold equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
81,576
|
|
|
60,885
|
|
|
142,461
|
|
|
|
|||||||||||||
Costs applicable to sales per ounce
|
|
$
|
8.29
|
|
|
$
|
13.36
|
|
|
$
|
43.26
|
|
|
$
|
10.52
|
|
|
$
|
1,117
|
|
|
$
|
863
|
|
|
$
|
1,008
|
|
|
$
|
12.61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Costs applicable to sales per average spot ounce
|
|
$
|
7.14
|
|
|
$
|
11.84
|
|
|
$
|
33.49
|
|
|
$
|
9.13
|
|
|
|
|
|
|
|
|
$
|
10.42
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
324,443
|
|
||||||||||||||
Treatment and refining costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,792
|
|
|||||||||||||||
Sustaining capital
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71,196
|
|
|||||||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,183
|
|
|||||||||||||||
Exploration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,269
|
|
|||||||||||||||
Reclamation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,744
|
|
|||||||||||||||
Project/pre-development costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,075
|
|
|||||||||||||||
All-in sustaining costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
461,702
|
|
||||||||||||||
Silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17,188,413
|
|
|||||||||||||||
Kensington and Wharf silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
8,547,660
|
|
|||||||||||||||||||
Consolidated silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,736,073
|
|
|||||||||||||||||
All-in sustaining costs per silver equivalent ounce
|
|
|
|
|
|
|
|
|
|
|
|
$
|
17.94
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated silver equivalent ounces sold (average spot)
|
|
|
|
|
|
|
|
|
|
|
|
31,132,974
|
|
|||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14.83
|
|
(1)
|
Excludes development capital for Jualin and Silvertip.
|
|
|
Silver
|
|
Gold
|
|
|
||||||||||||||||||||||||||
In thousands except per ounce amounts
|
|
Palmarejo
|
|
Rochester
|
|
Endeavor
|
|
Total
|
|
Kensington
|
|
Wharf
|
|
Total
|
|
Total
|
||||||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
|
$
|
161,145
|
|
|
$
|
89,220
|
|
|
$
|
1,045
|
|
|
$
|
251,410
|
|
|
$
|
109,478
|
|
|
$
|
58,301
|
|
|
$
|
167,779
|
|
|
$
|
419,189
|
|
Amortization
|
|
50,995
|
|
|
15,345
|
|
|
301
|
|
|
66,641
|
|
|
25,389
|
|
|
8,883
|
|
|
34,272
|
|
|
100,913
|
|
||||||||
Costs applicable to sales
|
|
$
|
110,150
|
|
|
$
|
73,875
|
|
|
$
|
744
|
|
|
$
|
184,769
|
|
|
$
|
84,089
|
|
|
$
|
49,418
|
|
|
$
|
133,507
|
|
|
$
|
318,276
|
|
Silver equivalent ounces sold
|
|
10,809,932
|
|
|
5,551,913
|
|
|
107,026
|
|
|
16,468,871
|
|
|
|
|
|
|
|
|
26,102,711
|
|
|||||||||||
Gold equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
90,348
|
|
|
70,216
|
|
|
160,564
|
|
|
|
|||||||||||||
Costs applicable to sales per ounce
|
|
$
|
10.19
|
|
|
$
|
13.31
|
|
|
$
|
6.95
|
|
|
$
|
11.22
|
|
|
$
|
931
|
|
|
$
|
704
|
|
|
$
|
831
|
|
|
$
|
12.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Costs applicable to sales per average spot ounce
|
|
$
|
9.17
|
|
|
$
|
12.32
|
|
|
|
|
$
|
10.20
|
|
|
|
|
|
|
|
|
$
|
10.68
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
318,276
|
|
||||||||||||||
Treatment and refining costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,312
|
|
|||||||||||||||
Sustaining capital
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46,491
|
|
|||||||||||||||
General and administrative
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
24,495
|
|
|||||||||||||||
Exploration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,856
|
|
|||||||||||||||
Reclamation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,835
|
|
|||||||||||||||
Project/pre-development costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,075
|
|
|||||||||||||||
All-in sustaining costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
432,340
|
|
||||||||||||||
Silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16,468,871
|
|
|||||||||||||||
Kensington and Wharf silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
9,633,840
|
|
|||||||||||||||||||
Consolidated silver equivalent ounces sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,102,711
|
|
|||||||||||||||||
All-in sustaining costs per silver equivalent ounce
|
|
|
|
|
|
|
|
|
|
|
|
$
|
16.55
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Consolidated silver equivalent ounces sold (average spot)
|
|
|
|
|
|
|
|
|
|
|
|
29,796,003
|
|
|||||||||||||||||||
All-in sustaining costs per average spot silver equivalent ounce
|
|
|
|
|
|
|
|
|
|
|
|
$
|
14.51
|
|
(1)
|
Excludes development capital for Jualin, Guadalupe South Portal and Rochester expansion permitting.
|
Item 4.
|
Controls and Procedures
|
(a)
|
Disclosure Controls and Procedures
|
(b)
|
Management’s Report on Internal Control Over Financial Reporting
|
|
|
COEUR MINING, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
Dated
|
October 31, 2018
|
/s/ Mitchell J. Krebs
|
|
|
|
MITCHELL J. KREBS
|
|
|
|
President and Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
|
Dated
|
October 31, 2018
|
/s/ Peter C. Mitchell
|
|
|
|
PETER C. MITCHELL
|
|
|
|
Senior Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
|
|
|
|
Dated
|
October 31, 2018
|
/s/ Ken Watkinson
|
|
|
|
KEN WATKINSON
|
|
|
|
Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)
|
BORROWER:
|
COEUR MINING, INC.,
a Delaware corporation |
GUARANTORS:
|
COEUR EXPLORATIONS, INC.
|
AGENT:
|
BANK OF AMERICA, N.A.,
as Administrative Agent |
LENDERS:
|
BANK OF AMERICA, N.A.,
as a Lender, L/C Issuer and Swingline Lender |
Lender
|
Revolving Commitment
|
Applicable Percentage
|
|||
Bank of America, N.A.
|
$
|
87,500,000.00
|
|
35.000000000
|
%
|
Royal Bank of Canada
|
$
|
67,500,000.00
|
|
27.000000000
|
%
|
Bank of Montreal, Chicago Branch
|
$
|
47,500,000.00
|
|
19.000000000
|
%
|
The Bank of Nova Scotia
|
$
|
47,500,000.00
|
|
19.000000000
|
%
|
|
|
|
|||
Total
|
|
$250,000,000.00
|
|
100.000000000
|
%
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Coeur Mining, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under the Company's supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report the Company's conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on the Company's most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ Mitchell J. Krebs
|
|
Mitchell J. Krebs
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Coeur Mining, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under the Company's supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report the Company's conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on the Company's most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ Peter C. Mitchell
|
|
Peter C. Mitchell
Chief Financial Officer
|
/s/ Mitchell J. Krebs
|
Mitchell J. Krebs
|
October 31, 2018
|
/s/ Peter C. Mitchell
|
Peter C. Mitchell
|
October 31, 2018
|
Mine or Operating Name
|
Section 104 S&S Citation (#)
|
Section 104 (b) Orders (#)
|
Section 104 (d) Citations and Orders (#)
|
Section 110 (b) (2) Violations (#)
|
Section 107 (a) Orders (#)
|
Total Dollar Value of MSHA Assessments Proposed
1
($)
|
Total Number of Mining Related Fatalities (#)
|
Received Notice of Pattern of Violations Under Section 104(e) (Yes/No)
|
Received Notice of Potential to Have Pattern Under Section 104(e) (Yes/No)
|
Legal Actions Pending as of Last Day of Period (#)
|
Legal Actions Initiated During Period
(#)
|
Legal Actions Resolved During Period
(#)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kensington
|
6
|
—
|
—
|
—
|
—
|
$8,430
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rochester
|
1
|
—
|
—
|
—
|
—
|
$8,650
|
—
|
NO
|
NO
|
—
|
—
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wharf
|
1
|
—
|
—
|
—
|
—
|
$880
|
—
|
NO
|
NO
|
1
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
8
|
—
|
—
|
—
|
—
|
$17,960
|
—
|
NO
|
NO
|
1
|
—
|
1
|
1.
|
The total dollar value of the Proposed Assessments includes all assessments received during the quarter.
|