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
|
|
¨
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|
|
|
|
|
|
|
|
Emerging growth company
|
|
¨
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Condensed Consolidated Balance Sheets
|
Page
|
Part I.
|
|
|
|
|
|
|
Item 1.
Financial Statements
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
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
|
|
|
|
|
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||
|
|
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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
|
|
|
March 31, 2019 (unaudited)
|
|
December 31, 2018
|
||||
ASSETS
|
Notes
|
In thousands, except share data
|
||||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
69,033
|
|
|
$
|
115,081
|
|
Receivables
|
4
|
33,530
|
|
|
29,744
|
|
||
Inventory
|
5
|
60,653
|
|
|
66,279
|
|
||
Ore on leach pads
|
5
|
74,517
|
|
|
75,122
|
|
||
Prepaid expenses and other
|
|
13,681
|
|
|
11,393
|
|
||
|
|
251,414
|
|
|
297,619
|
|
||
NON-CURRENT ASSETS
|
|
|
|
|
||||
Property, plant and equipment, net
|
|
299,756
|
|
|
298,451
|
|
||
Mining properties, net
|
|
962,058
|
|
|
971,567
|
|
||
Ore on leach pads
|
5
|
72,633
|
|
|
66,964
|
|
||
Restricted assets
|
|
10,444
|
|
|
12,133
|
|
||
Equity and debt securities
|
6
|
25,875
|
|
|
17,806
|
|
||
Receivables
|
4
|
31,571
|
|
|
31,151
|
|
||
Other
|
7
|
77,614
|
|
|
16,809
|
|
||
TOTAL ASSETS
|
|
$
|
1,731,365
|
|
|
$
|
1,712,500
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Accounts payable
|
|
$
|
51,777
|
|
|
$
|
47,210
|
|
Accrued liabilities and other
|
18
|
102,136
|
|
|
82,619
|
|
||
Debt
|
8
|
24,520
|
|
|
24,937
|
|
||
Reclamation
|
9
|
6,552
|
|
|
6,552
|
|
||
|
|
184,985
|
|
|
161,318
|
|
||
NON-CURRENT LIABILITIES
|
|
|
|
|
||||
Debt
|
8
|
432,269
|
|
|
433,889
|
|
||
Reclamation
|
9
|
131,275
|
|
|
128,994
|
|
||
Deferred tax liabilities
|
|
70,811
|
|
|
79,070
|
|
||
Other long-term liabilities
|
7
|
79,690
|
|
|
56,717
|
|
||
|
|
714,045
|
|
|
698,670
|
|
||
COMMITMENTS AND CONTINGENCIES
|
17
|
|
|
|
||||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 205,111,221 issued and outstanding at March 31, 2019 and 203,310,443 at December 31, 2018
|
|
2,051
|
|
|
2,033
|
|
||
Additional paid-in capital
|
|
3,442,029
|
|
|
3,443,082
|
|
||
Accumulated other comprehensive income (loss)
|
|
—
|
|
|
(59
|
)
|
||
Accumulated deficit
|
|
(2,611,745
|
)
|
|
(2,592,544
|
)
|
||
|
|
832,335
|
|
|
852,512
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
1,731,365
|
|
|
$
|
1,712,500
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
Notes
|
In thousands, except share data
|
||||||
Revenue
|
3
|
$
|
154,870
|
|
|
$
|
163,267
|
|
COSTS AND EXPENSES
|
|
|
|
|
||||
Costs applicable to sales
(1)
|
3
|
131,650
|
|
|
99,340
|
|
||
Amortization
|
|
41,876
|
|
|
30,777
|
|
||
General and administrative
|
|
9,474
|
|
|
8,804
|
|
||
Exploration
|
|
3,714
|
|
|
6,683
|
|
||
Pre-development, reclamation, and other
|
|
4,434
|
|
|
4,225
|
|
||
Total costs and expenses
|
|
191,148
|
|
|
149,829
|
|
||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
||||
Fair value adjustments, net
|
12
|
9,120
|
|
|
4,654
|
|
||
Interest expense, net of capitalized interest
|
8
|
(6,454
|
)
|
|
(5,965
|
)
|
||
Other, net
|
14
|
60
|
|
|
513
|
|
||
Total other income (expense), net
|
|
2,726
|
|
|
(798
|
)
|
||
Income (loss) before income and mining taxes
|
|
(33,552
|
)
|
|
12,640
|
|
||
Income and mining tax (expense) benefit
|
10
|
8,658
|
|
|
(11,949
|
)
|
||
Income (loss) from continuing operations
|
|
$
|
(24,894
|
)
|
|
$
|
691
|
|
Income (loss) from discontinued operations
|
18
|
5,693
|
|
|
550
|
|
||
NET INCOME (LOSS)
|
|
$
|
(19,201
|
)
|
|
$
|
1,241
|
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
||||
Unrealized gain (loss) on debt and equity securities
|
|
59
|
|
|
(278
|
)
|
||
Other comprehensive income (loss)
|
|
59
|
|
|
(278
|
)
|
||
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
(19,142
|
)
|
|
$
|
963
|
|
|
|
|
|
|
||||
NET INCOME (LOSS) PER SHARE
|
15
|
|
|
|
||||
Basic income (loss) per share:
|
|
|
|
|
||||
Net income (loss) from continuing operations
|
|
$
|
(0.12
|
)
|
|
$
|
0.00
|
|
Net income (loss) from discontinued operations
|
|
0.03
|
|
|
0.00
|
|
||
Basic
(2)
|
|
$
|
(0.09
|
)
|
|
$
|
0.01
|
|
Diluted income (loss) per share:
|
|
|
|
|
||||
Net income (loss) from continuing operations
|
|
$
|
(0.12
|
)
|
|
$
|
0.00
|
|
Net income (loss) from discontinued operations
|
|
0.03
|
|
|
0.00
|
|
||
Diluted
(2)
|
|
$
|
(0.09
|
)
|
|
$
|
0.01
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
Notes
|
In thousands
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
(19,201
|
)
|
|
$
|
1,241
|
|
(Income) loss from discontinued operations
|
|
(5,693
|
)
|
|
(550
|
)
|
||
Adjustments:
|
|
|
|
|
||||
Amortization
|
|
41,876
|
|
|
30,777
|
|
||
Accretion
|
|
2,943
|
|
|
3,318
|
|
||
Deferred taxes
|
|
(8,259
|
)
|
|
454
|
|
||
Fair value adjustments, net
|
12
|
(9,120
|
)
|
|
(4,654
|
)
|
||
Stock-based compensation
|
11
|
2,223
|
|
|
2,786
|
|
||
Inventory write-downs
|
5
|
15,447
|
|
|
—
|
|
||
Other
|
|
1,250
|
|
|
68
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Receivables
|
|
(5,735
|
)
|
|
(1,691
|
)
|
||
Prepaid expenses and other current assets
|
|
(2,684
|
)
|
|
(5,635
|
)
|
||
Inventory and ore on leach pads
|
|
(18,821
|
)
|
|
(8,708
|
)
|
||
Accounts payable and accrued liabilities
|
|
(6,072
|
)
|
|
(1,865
|
)
|
||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS
|
|
(11,846
|
)
|
|
15,541
|
|
||
CASH USED IN OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
(2,690
|
)
|
||
CASH PROVIDED BY OPERATING ACTIVITIES
|
|
(11,846
|
)
|
|
12,851
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Capital expenditures
|
|
(27,438
|
)
|
|
(42,345
|
)
|
||
Proceeds from the sale of assets
|
|
847
|
|
|
60
|
|
||
Purchase of investments
|
|
—
|
|
|
(361
|
)
|
||
Sale of investments
|
|
1,168
|
|
|
1,619
|
|
||
Other
|
|
1,741
|
|
|
(65
|
)
|
||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS
|
|
(23,682
|
)
|
|
(41,092
|
)
|
||
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
(28,470
|
)
|
||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
|
(23,682
|
)
|
|
(69,562
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Issuance of notes and bank borrowings, net of issuance costs
|
8
|
15,000
|
|
|
15,000
|
|
||
Payments on debt, finance leases, and associated costs
|
8
|
(22,356
|
)
|
|
(18,449
|
)
|
||
Other
|
|
(3,364
|
)
|
|
(4,606
|
)
|
||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS
|
|
(10,720
|
)
|
|
(8,055
|
)
|
||
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
(22
|
)
|
||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
(10,720
|
)
|
|
(8,077
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
201
|
|
|
557
|
|
||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
(46,047
|
)
|
|
(64,231
|
)
|
||
Less net cash provided by (used in) discontinued operations
(1)
|
|
—
|
|
|
(32,930
|
)
|
||
|
|
(46,047
|
)
|
|
(31,301
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
|
118,069
|
|
|
203,402
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
72,022
|
|
|
$
|
172,101
|
|
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, 2018
|
203,310
|
|
|
$
|
2,033
|
|
|
$
|
3,443,082
|
|
|
$
|
(2,592,544
|
)
|
|
$
|
(59
|
)
|
|
852,512
|
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,201
|
)
|
|
—
|
|
|
(19,201
|
)
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
59
|
|
|||||
Common stock issued under stock-based compensation plans, net
|
1,801
|
|
|
18
|
|
|
(1,053
|
)
|
|
—
|
|
|
—
|
|
|
(1,035
|
)
|
|||||
Balances at March 31, 2019 (Unaudited)
|
205,111
|
|
|
$
|
2,051
|
|
|
$
|
3,442,029
|
|
|
$
|
(2,611,745
|
)
|
|
$
|
—
|
|
|
$
|
832,335
|
|
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)
|
—
|
|
|
—
|
|
|
—
|
|
|
1,241
|
|
|
—
|
|
|
1,241
|
|
|||||
Reclassification of unrealized gain (loss) on equity securities for ASU 2016-01
|
—
|
|
|
—
|
|
|
—
|
|
|
2,604
|
|
|
(2,604
|
)
|
|
—
|
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(278
|
)
|
|
(278
|
)
|
|||||
Common stock issued under stock-based compensation plans, net
|
538
|
|
|
6
|
|
|
(1,635
|
)
|
|
—
|
|
|
—
|
|
|
(1,629
|
)
|
|||||
Balances at March 31, 2018 (Unaudited)
|
186,176
|
|
|
$
|
1,862
|
|
|
$
|
3,355,710
|
|
|
$
|
(2,541,898
|
)
|
|
$
|
(363
|
)
|
|
$
|
814,311
|
|
Three months ended March 31, 2019
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Other
|
|
Total
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gold sales
|
$
|
31,600
|
|
|
$
|
11,053
|
|
|
$
|
40,286
|
|
|
$
|
23,825
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
106,764
|
|
Silver sales
|
21,625
|
|
|
15,317
|
|
|
—
|
|
|
217
|
|
|
2,955
|
|
|
—
|
|
|
40,114
|
|
|||||||
Zinc sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,634
|
|
|
—
|
|
|
5,634
|
|
|||||||
Lead sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,358
|
|
|
—
|
|
|
2,358
|
|
|||||||
Metal sales
|
53,225
|
|
|
26,370
|
|
|
40,286
|
|
|
24,042
|
|
|
10,947
|
|
|
—
|
|
|
154,870
|
|
|||||||
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs applicable to sales
(1)
|
33,244
|
|
|
22,454
|
|
|
32,175
|
|
|
17,392
|
|
|
26,385
|
|
|
—
|
|
|
131,650
|
|
|||||||
Amortization
|
14,528
|
|
|
4,037
|
|
|
11,727
|
|
|
2,681
|
|
|
8,426
|
|
|
477
|
|
|
41,876
|
|
|||||||
Exploration
|
1,010
|
|
|
90
|
|
|
481
|
|
|
—
|
|
|
61
|
|
|
2,072
|
|
|
3,714
|
|
|||||||
Other operating expenses
|
702
|
|
|
962
|
|
|
271
|
|
|
664
|
|
|
241
|
|
|
11,068
|
|
|
13,908
|
|
|||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fair value adjustments, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,120
|
|
|
9,120
|
|
|||||||
Interest expense, net
|
(136
|
)
|
|
(142
|
)
|
|
(229
|
)
|
|
(21
|
)
|
|
(197
|
)
|
|
(5,729
|
)
|
|
(6,454
|
)
|
|||||||
Other, net
|
(1,040
|
)
|
|
(27
|
)
|
|
13
|
|
|
86
|
|
|
(188
|
)
|
|
1,216
|
|
|
60
|
|
|||||||
Income and mining tax (expense) benefit
|
1,291
|
|
|
144
|
|
|
—
|
|
|
(173
|
)
|
|
9,751
|
|
|
(2,355
|
)
|
|
8,658
|
|
|||||||
Income (loss) from continuing operations
|
$
|
3,856
|
|
|
$
|
(1,198
|
)
|
|
$
|
(4,584
|
)
|
|
$
|
3,197
|
|
|
$
|
(14,800
|
)
|
|
$
|
(11,365
|
)
|
|
$
|
(24,894
|
)
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,693
|
|
|
$
|
5,693
|
|
Segment assets
(2)
|
$
|
360,734
|
|
|
$
|
271,403
|
|
|
$
|
221,164
|
|
|
$
|
103,579
|
|
|
$
|
417,089
|
|
|
$
|
174,430
|
|
|
$
|
1,548,399
|
|
Capital expenditures
|
$
|
8,676
|
|
|
$
|
4,645
|
|
|
$
|
9,356
|
|
|
$
|
431
|
|
|
$
|
4,077
|
|
|
$
|
253
|
|
|
$
|
27,438
|
|
Three months ended March 31, 2018
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Other
|
|
Total
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gold sales
|
$
|
36,069
|
|
|
$
|
14,856
|
|
|
$
|
36,300
|
|
|
$
|
23,249
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
110,474
|
|
|
Silver sales
|
33,968
|
|
|
18,641
|
|
|
—
|
|
|
184
|
|
|
—
|
|
|
—
|
|
|
52,793
|
|
|||||||
Metal sales
|
70,037
|
|
|
33,497
|
|
|
36,300
|
|
|
23,433
|
|
|
—
|
|
|
—
|
|
|
163,267
|
|
|||||||
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs applicable to sales
(1)
|
31,096
|
|
|
24,305
|
|
|
28,630
|
|
|
15,309
|
|
|
—
|
|
|
—
|
|
|
99,340
|
|
|||||||
Amortization
|
16,325
|
|
|
4,831
|
|
|
6,717
|
|
|
2,657
|
|
|
—
|
|
|
247
|
|
|
30,777
|
|
|||||||
Exploration
|
3,970
|
|
|
33
|
|
|
1,590
|
|
|
10
|
|
|
—
|
|
|
1,080
|
|
|
6,683
|
|
|||||||
Other operating expenses
|
731
|
|
|
884
|
|
|
321
|
|
|
665
|
|
|
20
|
|
|
10,408
|
|
|
13,029
|
|
|||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Fair value adjustments, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,654
|
|
|
4,654
|
|
|||||||
Interest expense, net
|
(119
|
)
|
|
(98
|
)
|
|
(243
|
)
|
|
(12
|
)
|
|
(410
|
)
|
|
(5,083
|
)
|
|
(5,965
|
)
|
|||||||
Other, net
|
(2,144
|
)
|
|
(40
|
)
|
|
(37
|
)
|
|
(21
|
)
|
|
362
|
|
|
2,393
|
|
|
513
|
|
|||||||
Income and mining tax (expense) benefit
|
(12,443
|
)
|
|
(371
|
)
|
|
—
|
|
|
(639
|
)
|
|
835
|
|
|
669
|
|
|
(11,949
|
)
|
|||||||
Income (loss) from continuing operations
|
$
|
3,209
|
|
|
$
|
2,935
|
|
|
$
|
(1,238
|
)
|
|
$
|
4,120
|
|
|
$
|
767
|
|
|
$
|
(9,102
|
)
|
|
$
|
691
|
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
550
|
|
|
$
|
550
|
|
|
Segment assets
(2)
|
$
|
377,146
|
|
|
$
|
245,881
|
|
|
$
|
215,244
|
|
|
$
|
104,805
|
|
|
361,212
|
|
|
$
|
119,922
|
|
|
$
|
1,424,210
|
|
|
Capital expenditures
|
$
|
9,293
|
|
|
$
|
2,633
|
|
|
$
|
11,364
|
|
|
$
|
344
|
|
|
18,629
|
|
|
$
|
82
|
|
|
$
|
42,345
|
|
Assets
|
March 31, 2019
|
|
December 31, 2018
|
||||
Total assets for reportable segments
|
$
|
1,548,399
|
|
|
$
|
1,550,671
|
|
Cash and cash equivalents
|
69,033
|
|
|
115,081
|
|
||
Other assets
|
113,933
|
|
|
46,748
|
|
||
Total consolidated assets
|
$
|
1,731,365
|
|
|
$
|
1,712,500
|
|
Long-Lived Assets
|
March 31, 2019
|
|
December 31, 2018
|
||||
Mexico
|
$
|
337,752
|
|
|
$
|
342,007
|
|
United States
|
513,399
|
|
|
515,649
|
|
||
Canada
|
402,668
|
|
|
404,185
|
|
||
Other
|
7,995
|
|
|
8,177
|
|
||
Total
|
$
|
1,261,814
|
|
|
$
|
1,270,018
|
|
In thousands
|
March 31, 2019
|
|
December 31, 2018
|
||||
Current receivables:
|
|
|
|
||||
Trade receivables
|
$
|
8,065
|
|
|
$
|
5,147
|
|
Value added tax receivable
|
18,960
|
|
|
18,609
|
|
||
Income tax receivable
|
4,054
|
|
|
6
|
|
||
Manquiri Notes Receivable
|
1,982
|
|
|
5,487
|
|
||
Other
|
469
|
|
|
495
|
|
||
|
$
|
33,530
|
|
|
$
|
29,744
|
|
Non-current receivables:
|
|
|
|
||||
Value added tax receivable
(1)
|
$
|
27,237
|
|
|
$
|
26,817
|
|
RMC Receivable
(2)
|
4,334
|
|
|
4,334
|
|
||
|
31,571
|
|
|
31,151
|
|
||
Total receivables
|
$
|
65,101
|
|
|
$
|
60,895
|
|
In thousands
|
March 31, 2019
|
|
December 31, 2018
|
||||
Inventory:
|
|
|
|
||||
Concentrate
|
$
|
9,155
|
|
|
$
|
10,772
|
|
Precious metals
|
16,349
|
|
|
20,761
|
|
||
Supplies
|
35,149
|
|
|
34,746
|
|
||
|
60,653
|
|
|
66,279
|
|
||
Ore on leach pads:
|
|
|
|
||||
Current
|
74,517
|
|
|
75,122
|
|
||
Non-current
|
72,633
|
|
|
66,964
|
|
||
|
147,150
|
|
|
142,086
|
|
||
Total inventory and ore on leach pads
|
$
|
207,803
|
|
|
$
|
208,365
|
|
|
At March 31, 2019
|
||||||||||||||
In thousands
|
Cost
|
|
Gross
Unrealized
Losses
|
|
Gross
Unrealized
Gains
|
|
Estimated
Fair Value
|
||||||||
Equity Securities
|
|
|
|
|
|
|
|
||||||||
Metalla Royalty & Streaming Ltd.
|
$
|
11,803
|
|
|
$
|
—
|
|
|
$
|
12,055
|
|
|
$
|
23,858
|
|
Rockhaven Resources, Ltd.
|
2,064
|
|
|
(475
|
)
|
|
—
|
|
|
1,589
|
|
||||
Other
|
1,356
|
|
|
(928
|
)
|
|
—
|
|
|
428
|
|
||||
Equity securities
|
$
|
15,223
|
|
|
$
|
(1,403
|
)
|
|
$
|
12,055
|
|
|
$
|
25,875
|
|
|
At December 31, 2018
|
||||||||||||||
In thousands
|
Cost
|
|
Gross
Unrealized
Losses
|
|
Gross
Unrealized
Gains
|
|
Estimated
Fair Value
|
||||||||
Equity Securities
|
|
|
|
|
|
|
|
||||||||
Metalla Royalty & Streaming Ltd.
|
$
|
10,695
|
|
|
$
|
—
|
|
|
$
|
2,852
|
|
|
$
|
13,547
|
|
Rockhaven Resources, Ltd.
|
2,064
|
|
|
(452
|
)
|
|
—
|
|
|
1,612
|
|
||||
Other
|
1,376
|
|
|
(946
|
)
|
|
—
|
|
|
430
|
|
||||
Equity securities
|
$
|
14,135
|
|
|
$
|
(1,398
|
)
|
|
$
|
2,852
|
|
|
$
|
15,589
|
|
|
|
|
|
|
|
|
|
||||||||
Debt Securities
|
|
|
|
|
|
|
|
||||||||
Metalla Royalty & Streaming Ltd.
|
$
|
2,271
|
|
|
$
|
(54
|
)
|
|
$
|
—
|
|
|
$
|
2,217
|
|
|
|
|
|
|
|
|
|
||||||||
Equity and debt securities
|
$
|
16,406
|
|
|
$
|
(1,452
|
)
|
|
$
|
2,852
|
|
|
$
|
17,806
|
|
In thousands
|
March 31, 2019
|
||
Lease Cost
|
|
||
ROU operating lease cost
|
$
|
3,449
|
|
|
|
||
Short-term operating lease cost
|
$
|
2,751
|
|
|
|
||
Finance Lease Cost:
|
|
||
Amortization of ROU assets
|
$
|
2,968
|
|
Interest on lease liabilities
|
1,107
|
|
|
Total finance lease cost
|
$
|
4,075
|
|
In thousands
|
March 31, 2019
|
||
Operating Leases
|
|
||
Other assets, non-current
|
$
|
62,805
|
|
|
|
||
Accrued liabilities and other
|
$
|
13,340
|
|
Other long-term liabilities
|
48,326
|
|
|
Total operating lease liabilities
|
$
|
61,666
|
|
|
|
||
Finance Leases
|
|
||
Property and equipment, gross
|
$
|
106,989
|
|
Accumulated depreciation
|
(47,178
|
)
|
|
Property and equipment, net
|
$
|
59,811
|
|
|
|
||
Debt, current
|
$
|
24,520
|
|
Debt, non-current
|
51,224
|
|
|
Total finance lease liabilities
|
$
|
75,744
|
|
|
|
||
Weighted Average Remaining Lease Term
|
|
||
Weighted-average remaining lease term - finance leases
|
2.36
|
|
|
Weighted-average remaining lease term - operating leases
|
4.96
|
|
|
|
|
||
Weighted Average Discount Rate
|
|
||
Weighted-average discount rate - finance leases
|
6.40
|
%
|
|
Weighted-average discount rate - operating leases
|
5.19
|
%
|
At December 31, (In thousands)
|
|
|
||||
|
Operating leases
|
Finance leases
|
||||
2019
|
$
|
10,282
|
|
$
|
21,381
|
|
2020
|
13,261
|
|
24,988
|
|
||
2021
|
13,048
|
|
22,719
|
|
||
2022
|
13,031
|
|
13,707
|
|
||
2023
|
12,553
|
|
7,370
|
|
||
Thereafter
|
8,605
|
|
1,101
|
|
||
Total
|
$
|
70,780
|
|
$
|
91,266
|
|
Less: imputed interest
|
(9,114
|
)
|
(15,522
|
)
|
||
Net lease obligation
|
$
|
61,666
|
|
$
|
75,744
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||
In thousands
|
Current
|
|
Non-Current
|
|
Current
|
|
Non-Current
|
||||||||
2024 Senior Notes, net
(1)
|
$
|
—
|
|
|
$
|
246,045
|
|
|
$
|
—
|
|
|
$
|
245,854
|
|
Revolving Credit Facility
(2)
|
—
|
|
|
135,000
|
|
|
—
|
|
|
135,000
|
|
||||
Finance lease obligations
|
24,520
|
|
|
51,224
|
|
|
24,937
|
|
|
53,035
|
|
||||
|
$
|
24,520
|
|
|
$
|
432,269
|
|
|
$
|
24,937
|
|
|
$
|
433,889
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
2024 Senior Notes
|
$
|
3,673
|
|
|
$
|
3,673
|
|
Revolving Credit Facility
|
1,853
|
|
|
1,152
|
|
||
Finance lease obligations
|
1,107
|
|
|
524
|
|
||
Amortization of debt issuance costs
|
342
|
|
|
325
|
|
||
Accretion of Silvertip contingent consideration
|
179
|
|
|
324
|
|
||
Other debt obligations
|
—
|
|
|
107
|
|
||
Capitalized interest
|
(700
|
)
|
|
(140
|
)
|
||
Total interest expense, net of capitalized interest
|
$
|
6,454
|
|
|
$
|
5,965
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
Asset retirement obligation - Beginning
|
$
|
133,508
|
|
|
$
|
118,799
|
|
Accretion
|
2,895
|
|
|
2,545
|
|
||
Settlements
|
(662
|
)
|
|
(496
|
)
|
||
Asset retirement obligation - Ending
|
$
|
135,741
|
|
|
$
|
120,848
|
|
|
Three Months Ended March 31,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
In thousands
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
||||||||
United States
|
$
|
(6,047
|
)
|
$
|
(2,162
|
)
|
|
$
|
1,187
|
|
$
|
517
|
|
Canada
|
(26,525
|
)
|
9,792
|
|
|
—
|
|
—
|
|
||||
Mexico
|
(772
|
)
|
1,024
|
|
|
13,126
|
|
(13,222
|
)
|
||||
Other jurisdictions
|
(208
|
)
|
4
|
|
|
(1,673
|
)
|
756
|
|
||||
|
$
|
(33,552
|
)
|
$
|
8,658
|
|
|
$
|
12,640
|
|
$
|
(11,949
|
)
|
Grant date
|
|
Restricted
stock
|
|
Grant date fair
value of
restricted stock
|
|
Performance
shares
|
|
Grant date fair
value of
performance
shares
|
||||||
February 5, 2019
|
|
435,173
|
|
|
$
|
5.08
|
|
|
628,943
|
|
|
$
|
5.54
|
|
February 19, 2019
|
|
854,058
|
|
|
$
|
5.17
|
|
|
80,850
|
|
|
$
|
5.54
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
Unrealized gain (loss) on equity securities
|
$
|
9,185
|
|
|
$
|
4,842
|
|
Realized gain (loss) on equity securities
|
(8
|
)
|
|
(333
|
)
|
||
Zinc options
|
—
|
|
|
145
|
|
||
Interest rate swap, net
|
(57
|
)
|
|
—
|
|
||
Fair value adjustments, net
|
$
|
9,120
|
|
|
$
|
4,654
|
|
|
Fair Value at March 31, 2019
|
||||||||||||||
In thousands
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
25,875
|
|
|
$
|
25,875
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other derivative instruments, net
|
$
|
553
|
|
|
—
|
|
|
553
|
|
|
—
|
|
|||
|
$
|
26,428
|
|
|
$
|
25,875
|
|
|
$
|
553
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Silvertip contingent consideration
|
$
|
49,455
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49,455
|
|
Other derivative instruments, net
|
$
|
112
|
|
|
—
|
|
|
112
|
|
|
—
|
|
|||
|
$
|
49,567
|
|
|
$
|
—
|
|
|
$
|
112
|
|
|
$
|
49,455
|
|
|
Fair Value at December 31, 2018
|
||||||||||||||
In thousands
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Equity and debt securities
|
$
|
17,806
|
|
|
$
|
15,589
|
|
|
$
|
—
|
|
|
$
|
2,217
|
|
Other derivative instruments, net
|
914
|
|
|
—
|
|
|
914
|
|
|
—
|
|
||||
|
$
|
18,720
|
|
|
$
|
15,589
|
|
|
$
|
914
|
|
|
$
|
2,217
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Silvertip contingent consideration
|
$
|
49,276
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
49,276
|
|
Other derivative instruments, net
|
644
|
|
|
—
|
|
|
644
|
|
|
—
|
|
||||
|
$
|
49,920
|
|
|
$
|
—
|
|
|
$
|
644
|
|
|
$
|
49,276
|
|
|
Three Months Ended March 31, 2019
|
||||||||||||||||||
In thousands
|
Balance at the beginning of the period
|
|
Revaluation
|
|
Settlements
|
|
Accretion
|
|
Balance at the
end of the period |
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity and debt securities
|
$
|
2,217
|
|
|
$
|
59
|
|
|
$
|
(2,276
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Silvertip contingent consideration
|
$
|
49,276
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
179
|
|
|
$
|
49,455
|
|
|
March 31, 2019
|
||||||||||||||||||
In thousands
|
Book Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Manquiri Notes Receivable
|
$
|
1,982
|
|
|
$
|
1,982
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,982
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
5.875% Senior Notes due 2024
(1)
|
$
|
246,045
|
|
|
$
|
237,895
|
|
|
$
|
—
|
|
|
$
|
237,895
|
|
|
$
|
—
|
|
RCF
(2)
|
$
|
135,000
|
|
|
$
|
135,000
|
|
|
$
|
—
|
|
|
$
|
135,000
|
|
|
$
|
—
|
|
|
December 31, 2018
|
||||||||||||||||||
In thousands
|
Book Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Manquiri Notes Receivable
|
$
|
5,487
|
|
|
$
|
5,487
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,487
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
5.875% Senior Notes due 2024
(1)
|
$
|
245,854
|
|
|
$
|
220,446
|
|
|
$
|
—
|
|
|
$
|
220,446
|
|
|
$
|
—
|
|
RCF
(2)
|
$
|
135,000
|
|
|
$
|
135,000
|
|
|
$
|
—
|
|
|
$
|
135,000
|
|
|
$
|
—
|
|
In thousands except average prices and notional ounces
|
2019
|
|
Thereafter
|
||||
Provisional silver sales contracts
|
$
|
5,712
|
|
|
$
|
—
|
|
Average silver price per ounce
|
$
|
15.11
|
|
|
$
|
—
|
|
Notional ounces
|
378,139
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional gold sales contracts
|
$
|
10,657
|
|
|
$
|
—
|
|
Average gold price per ounce
|
$
|
1,303
|
|
|
$
|
—
|
|
Notional ounces
|
8,178
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional zinc sales contracts
|
$
|
11,581
|
|
|
$
|
—
|
|
Average zinc price per pound
|
$
|
1.27
|
|
|
$
|
—
|
|
Notional pounds
|
9,099,116
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional lead sales contracts
|
$
|
4,234
|
|
|
$
|
—
|
|
Average lead price per pound
|
$
|
0.91
|
|
|
$
|
—
|
|
Notional pounds
|
4,648,252
|
|
|
—
|
|
||
|
|
|
|
||||
Fixed interest rate swap payable
|
$
|
323
|
|
|
$
|
—
|
|
Fixed Interest rate
|
2.46
|
%
|
|
—
|
|
||
Notional dollars
|
$
|
50,000
|
|
|
$
|
—
|
|
|
|
|
|
||||
Variable interest rate swap receivable
|
$
|
326
|
|
|
$
|
—
|
|
Average variable interest rate
|
2.49
|
%
|
|
$
|
—
|
|
|
Notional dollars
|
$
|
50,000
|
|
|
$
|
—
|
|
|
|
|
|
||||
Fixed interest rate swap payable
|
$
|
960
|
|
|
$
|
—
|
|
Fixed Interest rate
|
2.50
|
%
|
|
—
|
|
||
Notional dollars
|
$
|
75,000
|
|
|
$
|
—
|
|
|
|
|
|
||||
Variable interest rate swap receivable
|
$
|
911
|
|
|
$
|
—
|
|
Average variable interest rate
|
2.49
|
%
|
|
$
|
—
|
|
|
Notional dollars
|
$
|
75,000
|
|
|
$
|
—
|
|
|
March 31, 2019
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Provisional metal sales contracts
|
$
|
550
|
|
|
$
|
161
|
|
Interest rate swaps
|
3
|
|
|
(49
|
)
|
||
|
$
|
553
|
|
|
$
|
112
|
|
|
December 31, 2018
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Provisional metal sales contracts
|
$
|
784
|
|
|
$
|
644
|
|
Zinc options
|
113
|
|
|
—
|
|
||
Interest rate swaps
|
17
|
|
|
—
|
|
||
|
$
|
914
|
|
|
$
|
644
|
|
|
|
Three Months Ended March 31,
|
||||||
Financial statement line
|
Derivative
|
2019
|
|
2018
|
||||
Revenue
|
Provisional metal sales contracts
|
$
|
250
|
|
|
$
|
253
|
|
Fair value adjustments, net
|
Zinc options
|
—
|
|
|
145
|
|
||
Fair value adjustments, net
|
Interest rate swaps
|
(46
|
)
|
|
—
|
|
||
|
|
$
|
204
|
|
|
$
|
398
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
Foreign exchange gain (loss)
|
$
|
(665
|
)
|
|
$
|
(670
|
)
|
Interest income on notes receivable
|
180
|
|
|
249
|
|
||
Gain (loss) on sale of assets and investments
|
52
|
|
|
(241
|
)
|
||
Other
|
493
|
|
|
1,175
|
|
||
Other, net
|
$
|
60
|
|
|
$
|
513
|
|
|
Three Months Ended March 31,
|
||||||
In thousands except per share amounts
|
2019
|
|
2018
|
||||
Net income (loss) available to common stockholders:
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
(24,894
|
)
|
|
$
|
691
|
|
Income (loss) from discontinued operations
|
5,693
|
|
|
550
|
|
||
|
$
|
(19,201
|
)
|
|
$
|
1,241
|
|
|
|
|
|
||||
Weighted average shares:
|
|
|
|
||||
Basic
|
202,422
|
|
|
184,367
|
|
||
Effect of stock-based compensation plans
|
—
|
|
|
3,254
|
|
||
Diluted
|
202,422
|
|
|
187,621
|
|
||
|
|
|
|
||||
Basic income (loss) per share:
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
(0.12
|
)
|
|
$
|
0.00
|
|
Income (loss) from discontinued operations
|
0.03
|
|
|
0.00
|
|
||
Basic
(1)
|
$
|
(0.09
|
)
|
|
$
|
0.01
|
|
|
|
|
|
||||
Diluted income (loss) per share:
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
(0.12
|
)
|
|
$
|
0.00
|
|
Income (loss) from discontinued operations
|
0.03
|
|
|
0.00
|
|
||
Diluted
(1)
|
$
|
(0.09
|
)
|
|
$
|
0.01
|
|
In thousands
|
Coeur 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
|
|
|||||
Amortization
|
221
|
|
|
18,445
|
|
|
23,210
|
|
|
—
|
|
|
41,876
|
|
|||||
General and administrative
|
9,474
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,474
|
|
|||||
Exploration
|
336
|
|
|
1,124
|
|
|
2,254
|
|
|
—
|
|
|
3,714
|
|
|||||
Pre-development, reclamation, and other
|
160
|
|
|
1,943
|
|
|
2,331
|
|
|
—
|
|
|
4,434
|
|
|||||
Total costs and expenses
|
10,191
|
|
|
93,534
|
|
|
87,423
|
|
|
—
|
|
|
191,148
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value adjustments, net
|
9,120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,120
|
|
|||||
Other, net
|
4,998
|
|
|
165
|
|
|
(800
|
)
|
|
(4,303
|
)
|
|
60
|
|
|||||
Interest expense, net of capitalized interest
|
(5,729
|
)
|
|
(392
|
)
|
|
(4,636
|
)
|
|
4,303
|
|
|
(6,454
|
)
|
|||||
Total other income (expense), net
|
8,389
|
|
|
(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 operations
|
5,693
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
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 tax
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
(19,142
|
)
|
|
$
|
(3,512
|
)
|
|
$
|
(17,638
|
)
|
|
$
|
21,150
|
|
|
$
|
(19,142
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
93,230
|
|
|
$
|
70,037
|
|
|
$
|
—
|
|
|
$
|
163,267
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales
(1)
|
—
|
|
|
68,245
|
|
|
31,095
|
|
|
—
|
|
|
99,340
|
|
|||||
Amortization
|
246
|
|
|
14,205
|
|
|
16,326
|
|
|
—
|
|
|
30,777
|
|
|||||
General and administrative
|
8,797
|
|
|
3
|
|
|
4
|
|
|
—
|
|
|
8,804
|
|
|||||
Exploration
|
459
|
|
|
2,245
|
|
|
3,979
|
|
|
—
|
|
|
6,683
|
|
|||||
Pre-development, reclamation, and other
|
406
|
|
|
1,947
|
|
|
1,872
|
|
|
—
|
|
|
4,225
|
|
|||||
Total costs and expenses
|
9,908
|
|
|
86,645
|
|
|
53,276
|
|
|
—
|
|
|
149,829
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value adjustments, net
|
4,946
|
|
|
(292
|
)
|
|
—
|
|
|
—
|
|
|
4,654
|
|
|||||
Other, net
|
4,475
|
|
|
(137
|
)
|
|
(106
|
)
|
|
(3,719
|
)
|
|
513
|
|
|||||
Interest expense, net of capitalized interest
|
(5,083
|
)
|
|
(353
|
)
|
|
(4,248
|
)
|
|
3,719
|
|
|
(5,965
|
)
|
|||||
Total other income (expense), net
|
4,338
|
|
|
(782
|
)
|
|
(4,354
|
)
|
|
—
|
|
|
(798
|
)
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(5,570
|
)
|
|
5,803
|
|
|
12,407
|
|
|
—
|
|
|
12,640
|
|
|||||
Income and mining tax (expense) benefit
|
1,638
|
|
|
(1,120
|
)
|
|
(12,467
|
)
|
|
—
|
|
|
(11,949
|
)
|
|||||
Income (loss) from continuing operations
|
(3,932
|
)
|
|
4,683
|
|
|
(60
|
)
|
|
—
|
|
|
691
|
|
|||||
Equity income (loss) in consolidated subsidiaries
|
4,164
|
|
|
(38
|
)
|
|
(170
|
)
|
|
(3,956
|
)
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
1,009
|
|
|
(284
|
)
|
|
(175
|
)
|
|
—
|
|
|
550
|
|
|||||
NET INCOME (LOSS)
|
$
|
1,241
|
|
|
$
|
4,361
|
|
|
$
|
(405
|
)
|
|
$
|
(3,956
|
)
|
|
$
|
1,241
|
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on marketable securities, net of tax
|
(278
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(278
|
)
|
|||||
Reclassification adjustments for impairment of equity securities, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
963
|
|
|
$
|
4,361
|
|
|
$
|
(405
|
)
|
|
$
|
(3,956
|
)
|
|
$
|
963
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Revenue
|
$
|
—
|
|
|
$
|
12,346
|
|
COSTS AND EXPENSES
|
|
|
|
||||
Costs applicable to sales
(1)
|
—
|
|
|
12,269
|
|
||
General and administrative
|
—
|
|
|
41
|
|
||
Pre-development, reclamation, and other
|
—
|
|
|
265
|
|
||
OTHER INCOME (EXPENSE), NET
|
|
|
|
||||
Interest expense, net of capitalized interest
|
—
|
|
|
(3
|
)
|
||
Other, net
|
—
|
|
|
(260
|
)
|
||
Pretax profit (loss) on discontinued operations related to major classes of pretax profit (loss)
|
—
|
|
|
(492
|
)
|
||
Pretax gain on the disposal of the discontinued operation
|
5,693
|
|
|
1,525
|
|
||
Total pretax gain or loss on discontinued operations
|
5,693
|
|
|
1,033
|
|
||
Income and mining tax (expense) benefit
|
—
|
|
|
(483
|
)
|
||
Income (loss) from discontinued operations
|
$
|
5,693
|
|
|
$
|
550
|
|
In thousands
|
March 31, 2019
|
|
December 31, 2018
|
||||
Accrued salaries and wages
|
$
|
16,190
|
|
|
$
|
22,229
|
|
Income and mining taxes
|
8,825
|
|
|
16,474
|
|
||
Silvertip contingent consideration
|
49,455
|
|
|
25,000
|
|
||
Accrued operating costs
|
6,179
|
|
|
13,688
|
|
||
Taxes other than income and mining
|
2,974
|
|
|
3,639
|
|
||
Accrued interest payable
|
5,173
|
|
|
1,589
|
|
||
Operating lease liabilities
|
13,340
|
|
|
$
|
—
|
|
|
Accrued liabilities and other
|
$
|
102,136
|
|
|
$
|
82,619
|
|
In thousands
|
March 31, 2019
|
|
March 31, 2018
|
||||
Cash and cash equivalents
|
$
|
69,033
|
|
|
$
|
159,643
|
|
Restricted cash equivalents
|
2,989
|
|
|
12,458
|
|
||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
$
|
72,022
|
|
|
$
|
172,101
|
|
•
|
Lower gold and silver grades attributable to mine sequencing led to lower gold and silver production and higher costs applicable to sales per gold and silver ounce at Palmarejo. Palmarejo’s La Nacion deposit, located between the Independencia and Guadalupe underground mines, remains on-schedule to commence production in the second half of 2019.
|
•
|
Rochester gold and silver production decreased and costs applicable to sales per gold and silver ounce increased driven by lower ore placement rates due to adverse weather conditions and decommissioning of the crusher as part of the high pressure grinding roll, or HGPR, crushing unit project. HGPR construction remains on-budget and on-schedule. Commissioning activities are now underway and the impact on silver recovery rates is expected to be seen beginning mid-year with full ramp-up expected during the third quarter.
|
•
|
Kensington gold production increased and costs applicable to sales per gold ounce remained comparable. The higher grade Jualin mine, which reached commercial production in December, supplemented existing ore sources at Kensington in the first quarter of 2019 and is expected to contribute to increased production and lower costs applicable to sales per gold ounce for the remainder of 2019. Mining activities at Jualin shifted focus from ore development to full production, allowing for longhole stope production at Jualin in future quarters. Ore from Jualin accounted for approximately
10%
of Kensington’s gold production during the quarter and had an average grade of 0.41 ounces per ton. Jualin is expected to account for approximately 20% of Kensington’s total production in 2019.
|
•
|
Wharf first quarter gold production reflects the impact of lower grade tons placed in the prior quarter. Costs applicable to sales per gold ounce increased in the first quarter of 2019 as a result of higher equipment rental and consumable costs.
|
•
|
Production at Silvertip, which commenced commercial production in September 2018, was higher driven by higher tons milled. The mill exceeded 1,100 tpd (1,000 metric tonnes per day (“mtpd”)) intermittently in March and averaged approximately 843 tpd (765 mtpd), excluding two days of scheduled maintenance. Average head grades, recovery rates and concentrate grades are expected to continue trending higher as mill availability improves and newly-mined higher grade material is processed. Current areas of focus include (i) sustaining consistent levels of mill availability to allow for recovery rate optimization, (ii) accelerating underground development rates to enhance mining flexibility and access to higher grade ore, and (iii) workforce training and retention.
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
Financial Results from Continuing Operations:
|
|
|
|
||||
Gold sales
|
$
|
106,764
|
|
|
$
|
110,474
|
|
Silver sales
|
$
|
40,114
|
|
|
$
|
52,793
|
|
Zinc sales
|
$
|
5,634
|
|
|
$
|
—
|
|
Lead sales
|
$
|
2,358
|
|
|
$
|
—
|
|
Consolidated Revenue
|
$
|
154,870
|
|
|
$
|
163,267
|
|
Net income (loss)
|
$
|
(24,894
|
)
|
|
$
|
691
|
|
Net income (loss) per share, diluted
|
$
|
(0.12
|
)
|
|
$
|
0.00
|
|
Adjusted net income (loss)
(1)
|
$
|
(22,958
|
)
|
|
$
|
342
|
|
Adjusted net income (loss) per share, diluted
(1)
|
$
|
(0.11
|
)
|
|
$
|
0.00
|
|
EBITDA
(1)
|
$
|
14,778
|
|
|
$
|
49,382
|
|
Adjusted EBITDA
(1)
|
$
|
26,104
|
|
|
$
|
49,186
|
|
Operating Results from Continuing Operations:
|
|
|
|
||||
Gold ounces produced
|
78,336
|
|
|
85,383
|
|
||
Silver ounces produced
|
2,490,434
|
|
|
3,182,110
|
|
||
Zinc pounds produced
|
3,719,013
|
|
|
—
|
|
||
Lead pounds produced
|
3,076,845
|
|
|
—
|
|
||
Gold ounces sold
|
85,326
|
|
|
87,153
|
|
||
Silver ounces sold
|
2,635,015
|
|
|
3,160,913
|
|
||
Zinc pounds sold
|
4,723,069
|
|
|
—
|
|
||
Lead pounds sold
|
2,747,847
|
|
|
—
|
|
||
Average realized price per gold ounce
|
$
|
1,251
|
|
|
$
|
1,268
|
|
Average realized price per silver ounce
|
$
|
15.22
|
|
|
$
|
16.70
|
|
Average realized price per zinc pound
|
$
|
1.50
|
|
|
$
|
—
|
|
Average realized price per lead pound
|
$
|
0.92
|
|
|
$
|
—
|
|
Financial and Operating Results from Discontinued Operations:
(2)
|
|
|
|
||||
Income (loss) from discontinued operations
|
$
|
5,693
|
|
|
$
|
550
|
|
Silver ounces produced
|
—
|
|
|
643,078
|
|
||
Gold ounces produced
|
—
|
|
|
78
|
|
||
Silver ounces sold
|
—
|
|
|
704,479
|
|
||
Gold ounces sold
|
—
|
|
|
292
|
|
|
Three Months Ended March 31,
|
|
Increase
|
|
Percent
|
|||||||||
In thousands
|
2019
|
|
2018
|
|
(Decrease)
|
|
Change
|
|||||||
Gold sales
|
$
|
106,764
|
|
|
$
|
110,474
|
|
|
$
|
(3,710
|
)
|
|
(3
|
)%
|
Silver sales
|
40,114
|
|
|
52,793
|
|
|
(12,679
|
)
|
|
(24
|
)%
|
|||
Zinc sales
|
5,634
|
|
|
—
|
|
|
5,634
|
|
|
100
|
%
|
|||
Lead sales
|
2,358
|
|
|
—
|
|
|
2,358
|
|
|
100
|
%
|
|||
Metal sales
|
$
|
154,870
|
|
|
$
|
163,267
|
|
|
$
|
(8,397
|
)
|
|
(5
|
)%
|
|
Three Months Ended March 31,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
In thousands
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
||||||||
United States
|
$
|
(6,047
|
)
|
$
|
(2,162
|
)
|
|
$
|
1,187
|
|
$
|
517
|
|
Canada
|
(26,525
|
)
|
9,792
|
|
|
—
|
|
—
|
|
||||
Mexico
|
(772
|
)
|
1,024
|
|
|
13,126
|
|
(13,222
|
)
|
||||
Other jurisdictions
|
(208
|
)
|
4
|
|
|
(1,673
|
)
|
756
|
|
||||
|
$
|
(33,552
|
)
|
$
|
8,658
|
|
|
$
|
12,640
|
|
$
|
(11,949
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Tons milled
|
378,987
|
|
|
359,893
|
|
||
Average gold grade (oz/t)
|
0.07
|
|
|
0.10
|
|
||
Average silver grade (oz/t)
|
4.64
|
|
|
6.88
|
|
||
Average recovery rate – Au
|
83.4
|
%
|
|
80.4
|
%
|
||
Average recovery rate – Ag
|
72.8
|
%
|
|
81.4
|
%
|
||
Gold ounces produced
|
23,205
|
|
|
29,896
|
|
||
Silver ounces produced
|
1,278,283
|
|
|
2,013,239
|
|
||
Gold ounces sold
|
27,394
|
|
|
30,888
|
|
||
Silver ounces sold
|
1,405,409
|
|
|
2,030,703
|
|
||
Costs applicable to sales per gold ounce
(1)
|
$
|
716
|
|
|
$
|
519
|
|
Costs applicable to sales per silver ounce
(1)
|
$
|
9.70
|
|
|
$
|
7.43
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Tons placed
|
2,667,559
|
|
|
4,351,131
|
|
||
Average gold grade (oz/t)
|
0.003
|
|
|
0.003
|
|
||
Average silver grade (oz/t)
|
0.46
|
|
|
0.54
|
|
||
Gold ounces produced
|
8,256
|
|
|
11,487
|
|
||
Silver ounces produced
|
959,905
|
|
|
1,157,026
|
|
||
Gold ounces sold
|
8,511
|
|
|
11,163
|
|
||
Silver ounces sold
|
1,000,453
|
|
|
1,119,227
|
|
||
Costs applicable to sales per gold ounce
(1)
|
$
|
1,108
|
|
|
$
|
947
|
|
Costs applicable to sales per silver ounce
(1)
|
$
|
13.02
|
|
|
$
|
11.85
|
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Tons milled
|
164,332
|
|
|
158,706
|
|
||
Average gold grade (oz/t)
|
0.20
|
|
|
0.17
|
|
||
Average recovery rate
|
90.2
|
%
|
|
94.0
|
%
|
||
Gold ounces produced
|
29,973
|
|
|
26,064
|
|
||
Gold ounces sold
|
$
|
31,335
|
|
|
$
|
27,763
|
|
Costs applicable to sales per gold ounce
(1)
|
$
|
1,027
|
|
|
$
|
1,010
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Tons placed
|
1,090,510
|
|
|
1,076,395
|
|
||
Average gold grade (oz/t)
|
0.020
|
|
|
0.022
|
|
||
Gold ounces produced
|
16,902
|
|
|
17,936
|
|
||
Silver ounces produced
|
13,484
|
|
|
11,845
|
|
||
Gold ounces sold
|
18,086
|
|
|
17,339
|
|
||
Silver ounces sold
|
14,052
|
|
|
10,983
|
|
||
Costs applicable to sales per gold ounce
(1)
|
$
|
950
|
|
|
$
|
868
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three Months Ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Tons milled
|
62,051
|
|
|
—
|
|
||
Average silver grade (oz/t)
|
5.50
|
|
|
—
|
|
||
Average zinc grade (%)
|
5.9
|
%
|
|
—
|
|
||
Average lead grade (%)
|
3.7
|
%
|
|
—
|
|
||
Average recovery rate – Ag
|
69.9
|
%
|
|
|
|||
Average recovery rate – Zn
|
50.5
|
%
|
|
|
|||
Average recovery rate – Pb
|
66.8
|
%
|
|
|
|||
Silver ounces produced
|
238,762
|
|
|
—
|
|
||
Zinc pounds produced
|
3,719,013
|
|
|
—
|
|
||
Lead pounds produced
|
3,076,845
|
|
|
—
|
|
||
Silver ounces sold
|
$
|
215,101
|
|
|
$
|
—
|
|
Zinc pounds sold
|
$
|
4,723,069
|
|
|
$
|
—
|
|
Lead pounds sold
|
$
|
2,747,847
|
|
|
$
|
—
|
|
Costs applicable to sales per silver ounce
(1)
|
$
|
33.12
|
|
|
$
|
—
|
|
Costs applicable to sales per zinc pound
(1)
|
$
|
2.85
|
|
|
$
|
—
|
|
Costs applicable to sales per lead ounce
(1)
|
$
|
2.11
|
|
|
$
|
—
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
Cash flow before changes in operating assets and liabilities
|
$
|
21,466
|
|
|
$
|
33,440
|
|
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables
|
(5,735
|
)
|
|
(1,691
|
)
|
||
Prepaid expenses and other
|
(2,684
|
)
|
|
(5,635
|
)
|
||
Inventories
|
(18,821
|
)
|
|
(8,708
|
)
|
||
Accounts payable and accrued liabilities
|
(6,072
|
)
|
|
(1,865
|
)
|
||
Cash provided by (used in) continuing operating activities
|
$
|
(11,846
|
)
|
|
$
|
15,541
|
|
|
Three Months Ended March 31,
|
||||||
In thousands except per share amounts
|
2019
|
|
2018
|
||||
Net income (loss)
|
$
|
(19,201
|
)
|
|
$
|
1,241
|
|
(Income) loss from discontinued operations, net of tax
|
(5,693
|
)
|
|
(550
|
)
|
||
Fair value adjustments, net
|
(9,120
|
)
|
|
(4,654
|
)
|
||
(Gain) loss on sale of assets and securities
|
(52
|
)
|
|
241
|
|
||
Interest income on notes receivables
|
(180
|
)
|
|
(248
|
)
|
||
Silvertip start-up write-down
|
15,447
|
|
|
—
|
|
||
Foreign exchange loss (gain)
|
1,256
|
|
|
4,312
|
|
||
Tax effect of adjustments
(1)
|
(5,415
|
)
|
|
—
|
|
||
Adjusted net income (loss)
|
$
|
(22,958
|
)
|
|
$
|
342
|
|
|
|
|
|
||||
Adjusted net income (loss) per share - Basic
|
$
|
(0.11
|
)
|
|
$
|
0.00
|
|
Adjusted net income (loss) per share - Diluted
|
$
|
(0.11
|
)
|
|
$
|
0.00
|
|
(1)
|
For the three months ended March 31, 2019, tax effect of adjustments of
$5.4 million
(-89%) is primarily related to the write-down of Silvertip start-up costs.
|
|
Three Months Ended March 31,
|
||||||
In thousands except per share amounts
|
2019
|
|
2018
|
||||
Net income (loss)
|
$
|
(19,201
|
)
|
|
$
|
1,241
|
|
(Income) loss from discontinued operations, net of tax
|
(5,693
|
)
|
|
(550
|
)
|
||
Interest expense, net of capitalized interest
|
6,454
|
|
|
5,965
|
|
||
Income tax provision (benefit)
|
(8,658
|
)
|
|
11,949
|
|
||
Amortization
|
41,876
|
|
|
30,777
|
|
||
EBITDA
|
14,778
|
|
|
49,382
|
|
||
Fair value adjustments, net
|
(9,120
|
)
|
|
(4,654
|
)
|
||
Foreign exchange (gain) loss
|
665
|
|
|
670
|
|
||
(Gain) loss on sale of assets and securities
|
(52
|
)
|
|
241
|
|
||
Interest income on notes receivables
|
(180
|
)
|
|
(248
|
)
|
||
Silvertip start-up write-down
|
15,447
|
|
|
—
|
|
||
Asset retirement obligation accretion
|
2,943
|
|
|
2,669
|
|
||
Inventory adjustments and write-downs
|
1,623
|
|
|
1,126
|
|
||
Adjusted EBITDA
|
$
|
26,104
|
|
|
$
|
49,186
|
|
In thousands except per ounce or per pound amounts
|
Palmarejo
|
|
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 ounces
|
27,394
|
|
|
8,511
|
|
|
31,335
|
|
|
18,086
|
|
|
|
|
85,326
|
|
|||||||
Silver ounces
|
1,405,409
|
|
|
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
|
|
|
|
In thousands except per ounce or per pound amounts
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Total
|
||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
$
|
47,420
|
|
|
$
|
29,136
|
|
|
$
|
35,347
|
|
|
$
|
17,966
|
|
|
$
|
—
|
|
|
$
|
129,869
|
|
Amortization
|
(16,325
|
)
|
|
(4,831
|
)
|
|
(6,717
|
)
|
|
(2,657
|
)
|
|
—
|
|
|
(30,530
|
)
|
||||||
Costs applicable to sales
|
$
|
31,095
|
|
|
$
|
24,305
|
|
|
$
|
28,630
|
|
|
$
|
15,309
|
|
|
$
|
—
|
|
|
$
|
99,339
|
|
Inventory Adjustments
|
8
|
|
|
(471
|
)
|
|
(591
|
)
|
|
(72
|
)
|
|
—
|
|
|
(1,126
|
)
|
||||||
By-product credit
|
—
|
|
|
—
|
|
|
—
|
|
|
(183
|
)
|
|
—
|
|
|
(183
|
)
|
||||||
Adjusted costs applicable to sales
|
$
|
31,103
|
|
|
$
|
23,834
|
|
|
$
|
28,039
|
|
|
$
|
15,054
|
|
|
$
|
—
|
|
|
$
|
98,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metal Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ounces
|
30,888
|
|
|
11,163
|
|
|
27,763
|
|
|
17,339
|
|
|
|
|
87,153
|
|
|||||||
Silver ounces
|
2,030,703
|
|
|
1,119,227
|
|
|
|
|
10,983
|
|
|
—
|
|
|
3,160,913
|
|
|||||||
Zinc pounds
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
||||||||||
Lead pounds
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ($/oz)
|
$
|
519
|
|
|
$
|
947
|
|
|
$
|
1,010
|
|
|
$
|
868
|
|
|
|
|
|
||||
Silver ($/oz)
|
$
|
7.43
|
|
|
$
|
11.85
|
|
|
|
|
|
|
$
|
—
|
|
|
|
||||||
Zinc ($/lb)
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
|
||||||||||
Lead ($/lb)
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
|
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
|
May 1, 2019
|
/s/ Mitchell J. Krebs
|
|
|
|
MITCHELL J. KREBS
|
|
|
|
President and Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
|
Dated
|
May 1, 2019
|
/s/ Thomas S. Whelan
|
|
|
|
THOMAS S. WHELAN
|
|
|
|
Senior Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
|
|
|
|
Dated
|
May 1, 2019
|
/s/ Ken Watkinson
|
|
|
|
KEN WATKINSON
|
|
|
|
Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)
|
Pricing Tier
|
Consolidated Net Leverage Ratio
|
Commitment Fee
|
Letter of Credit Fee
|
Eurodollar Rate Loans
|
Base Rate Loans
|
|
1
|
< 1.00:1.00
|
0.35%
|
2.00%
|
2.00%
|
1.00%
|
|
2
|
< 2.00:1.00 but ≥ 1.00:1.00
|
0.40%
|
2.25%
|
2.25%
|
1.25%
|
|
3
|
< 3.00:1.00 but ≥ 2.00:1.00
|
0.45%
|
2.50%
|
2.50%
|
1.50%
|
|
4
|
< 3.50:1.00 but
≥ 3.00:1.00
|
0.50%
|
2.75%
|
2.75%
|
1.75%
|
|
5
|
≥ 3.50:1.00
|
0.50%
|
3.50%
|
3.50%
|
2.50%
|
|
Fiscal Quarter End
|
Maximum Consolidated
Net Leverage Ratio
|
March 31, 2019
|
N/A
|
June 30, 2019
|
5.75:1.00
|
September 30, 2019
|
4.50:1.00
|
December 31, 2019 and each fiscal quarter ending thereafter
|
3.50:1.00
|
Fiscal Quarter End
|
Maximum Consolidated
Net Leverage Ratio
|
June 30, 2019
|
2.70:1.00
|
September 30, 2019
|
2.25:1.00
|
December 31, 2019 and each fiscal quarter ending thereafter
|
2.00:1.00
|
BORROWER:
|
|
COEUR MINING, INC.,
a Delaware corporation
|
|
|
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President & Chief Executive Officer
|
|
|
|
GUARANTORS:
|
|
COEUR EXPLORATIONS, INC.
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
|
|
|
COEUR ROCHESTER, INC.
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
|
|
|
COEUR CAPITAL, INC
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
|
|
|
COEUR ALASKA, INC
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
|
|
|
COEUR SOUTH AMERICA CORP.
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
|
|
|
WHARF RESOURCES (U.S.A.), INC.
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
|
|
|
WHARF RESOURCES MANAGEMENT INC.
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
WHARF REWARD MINES INC.
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
|
|
|
WHARF GOLD MINES INC.
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
|
|
|
GOLDEN REWARD MINING COMPANY LIMITED PARTNERSHIP
|
|
|
By: WHARF GOLD MINES INC., THE GENERAL PARTNER
|
|
By:
|
/s/ Mitchell J. Krebs
|
|
Name:
|
Mitchell J. Krebs
|
|
Title:
|
President
|
|
|
|
ADMINISTRATIVE AGENT:
|
|
BANK OF AMERICA, N.A.,
as Administrative Agent
|
|
By:
|
/s/ Paley Chen
|
|
Name:
|
Paley Chen
|
|
Title:
|
Vice President
|
LENDERS:
|
|
BANK OF AMERICA, N.A.,
as a Lender, L/C Issuer and Swingline Lender
|
|
By:
|
/s/ Jonathan M. Phillips
|
|
Name:
|
Jonathan M. Phillips
|
|
Title:
|
Senior Vice President
|
|
|
|
|
|
ROYAL BANK OF CANADA,
as a Lender
|
|
By:
|
/s/ Stam Fountoulakis
|
|
Name:
|
Stam Fountoulakis
|
|
Title:
|
Authorized Signatory
|
|
|
|
|
|
BANK OF MONTREAL, CHICAGO BRANCH,
as a Lender
|
|
By:
|
/s/ Brian L. Banke
|
|
Name:
|
Brian L. Banke
|
|
Title:
|
Managing Director
|
|
|
|
|
|
THE BANK OF NOVA SCOTIA,
as a Lender
|
|
By:
|
/s/ Ian Stephenson
|
|
Name:
|
Ian Stephenson
|
|
Title:
|
Associate Director
|
|
|
|
|
By:
|
/s/ Monik Vora
|
|
Name:
|
Monik Vora
|
|
Title:
|
Associate Director
|
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/ Thomas S. Whelan
|
|
Thomas S. Whelan
Chief Financial Officer
|
/s/ Mitchell J. Krebs
|
Mitchell J. Krebs
|
May 1, 2019
|
/s/ Thomas S. Whelan
|
Thomas S. Whelan
|
May 1, 2019
|
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
1,2
($)
|
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
|
2
|
—
|
—
|
—
|
—
|
$0
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rochester
|
—
|
—
|
—
|
—
|
—
|
$0
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wharf
|
—
|
—
|
—
|
—
|
—
|
$0
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sterling
|
—
|
—
|
—
|
—
|
—
|
$484
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
2
|
—
|
—
|
—
|
—
|
$484
|
—
|
NO
|
NO
|
—
|
—
|
—
|
1.
|
The total dollar value of the Proposed Assessments includes all assessments received during the quarter.
|
2.
|
Assessment relates to non-reportable citation issued in prior period.
|