Delaware
|
82-0109423
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
104 S. Michigan Ave.
|
Suite 900
|
60603
|
Chicago
|
IL
|
(Zip Code)
|
(Address of principal executive offices)
|
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock (par value $.01 per share)
|
CDE
|
New York Stock Exchange
|
Large accelerated filer
|
|
☑
|
Accelerated filer
|
|
☐
|
|
|
|
|
||
Non-accelerated filer
|
|
☐
|
Smaller reporting company
|
|
☐
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
|
☐
|
PART I
|
||
PART II
|
||
PART III
|
||
Directors, Executive Officers and Corporate Governance
|
||
Certain Relationships and Related Transactions, and Director Independence
|
||
PART IV
|
||
Item 16.
|
Form 10-K Summary
|
|
Item 1.
|
Business
|
•
|
Coeur owns 100% of Coeur Mexicana S.A. de C.V. (“Coeur Mexicana”), which has operated the Palmarejo complex in the State of Chihuahua in Northern Mexico since 2009. The processing facility at the Palmarejo complex is fed by the Guadalupe, Independencia and La Nacion underground mines. The Company also has several exploration targets at the Palmarejo complex. The Palmarejo complex produced 111,932 ounces of gold and 6.8 million ounces of silver in 2019. Proven and probable reserves at the Palmarejo complex totaled 693,000 ounces of gold and 50.5 million ounces of silver as of December 31, 2019.
|
•
|
Coeur owns 100% of Coeur Rochester, Inc. (“Coeur Rochester”), which has operated the Rochester mine, an open-pit silver and gold mine located in northwestern Nevada, since 1986. Coeur Rochester also owns the Lincoln Hill and related assets adjacent to its Rochester mine. The Rochester mine produced 35,400 ounces of gold and 3.8 million ounces of silver in 2019. Proven and probable reserves at the Rochester mine totaled 737,000 ounces of gold and 117.5 million ounces of silver as of December 31, 2019.
|
•
|
Coeur owns 100% of Coeur Alaska, Inc. (“Coeur Alaska”), which has operated the Kensington mine, an underground gold mine located north of Juneau, Alaska since 2010. The Kensington mine produced a total of 127,914 ounces of gold in 2019. Proven and probable reserves at the Kensington mine totaled 366,000 ounces of gold as of December 31, 2019.
|
•
|
Coeur owns 100% of Wharf Resources (U.S.A.), Inc. (“Wharf”), which operates the Wharf mine, an open-pit gold mine located in the Black Hills mining district of South Dakota near Lead, South Dakota. Coeur acquired Wharf in February 2015. The Wharf mine produced 84,172 ounces of gold in 2019. Proven and probable reserves at the Wharf mine totaled 768,000 ounces of gold as of December 31, 2019.
|
•
|
Coeur owns 100% of Coeur Silvertip Holdings Ltd. (“Silvertip”), which operates the underground Silvertip silver-zinc-lead mine located in northern British Columbia, Canada. Coeur acquired Silvertip in October 2017 and commenced commercial production in September 2018. In 2019, the Silvertip mine produced a total of 1.2 million ounces of silver, 17.1 million pounds of zinc and 16.6 million pounds of lead. Proven and probable reserves at the Silvertip mine totaled 15.0 million ounces of silver, 295.4 million pounds of zinc and 196.5 million pounds of lead as of December 31, 2019. Subsequent to the end of the period covered by this Report, the Company made the decision to temporarily suspend mining and processing activities as a result of further deterioration in zinc and lead market conditions as well as processing facility-related challenges. The Company plans to (i) double its exploration investment in 2020 to potentially further expand the mineralized material and extend the mine life, and (ii) pursue a mill expansion to improve the asset’s cost structure and its ability to deliver sustainable cash flow
|
•
|
Coeur owns 100% of Coeur Sterling, Inc. whose principal asset is the Sterling gold project and the Crown Block of deposits consisting of the Daisy, Secret Pass and SNA historic mineralized material located in the Walker Lane trend in Nevada (the “Sterling Project”).
|
•
|
Coeur owns 100% of Coeur La Preciosa Silver Corp. which owns the mining concessions of the La Preciosa project, which is a silver-gold exploration project in the State of Durango, Mexico (“La Preciosa”).
|
•
|
Coeur has made strategic equity investments in other early-stage precious metals companies.
|
|
Year Ended December 31,
|
||||||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
High
|
Average
|
Low
|
|
High
|
Average
|
Low
|
|
High
|
Average
|
Low
|
||||||||||||||||||
Gold (per oz.)
|
$
|
1,546
|
|
$
|
1,393
|
|
$
|
1,270
|
|
|
$
|
1,355
|
|
$1,268
|
$
|
1,178
|
|
|
$
|
1,346
|
|
$1,257
|
$
|
1,151
|
|
||||
Silver (per oz.)
|
$
|
19.31
|
|
$
|
16.21
|
|
$
|
14.38
|
|
|
$
|
17.52
|
|
$15.71
|
$
|
13.97
|
|
|
$
|
18.56
|
|
$17.05
|
$
|
15.22
|
|
||||
Zinc (per lb.)
|
$
|
1.37
|
|
$
|
1.16
|
|
$
|
1.00
|
|
|
$
|
1.64
|
|
$
|
1.33
|
|
$
|
1.04
|
|
|
$
|
1.53
|
|
$
|
1.31
|
|
$
|
1.10
|
|
Lead (per lb.)
|
$
|
1.03
|
|
$
|
0.91
|
|
$
|
0.80
|
|
|
$
|
1.22
|
|
$
|
1.02
|
|
$
|
0.85
|
|
|
$
|
1.17
|
|
$
|
1.05
|
|
$
|
0.91
|
|
Palmarejo Complex
|
876
|
|
Rochester Mine
|
276
|
|
Kensington Mine
|
383
|
|
Wharf Mine
|
218
|
|
Silvertip Mine
|
309
|
|
Sterling Project
|
9
|
|
U.S. Corporate and Other
|
84
|
|
Total
|
2,155
|
|
•
|
Geographical focus on North America;
|
•
|
Concentrate on discovering, developing, and operating a balanced portfolio of precious metal assets;
|
•
|
Disciplined capital allocation including portfolio optimization and prioritizing near mine growth opportunities;
|
•
|
Bolstering a high-performing, healthy organization and culture;
|
•
|
Achieving an investable level of scale and relevance through its unique portfolio of operating and growth assets;
|
•
|
Delivering low cost production;
|
•
|
Maintaining balance sheet flexibility to provide financial flexibility through cycles and inherent volatility;
|
•
|
Engaging in leading Environmental, Social and Governance (“ESG”) programs, priorities and initiatives;
|
•
|
Maintaining peer leading levels of trading liquidity; and
|
•
|
Promoting the highest level of employee health and safety.
|
Item 1A.
|
Risk Factors
|
Metal
|
Low Price for 2019
|
Date
|
High Price for 2019
|
Date
|
Gold (per ounce)
|
$1,269.50
|
April 23, 2019
|
$1,546.10
|
September 4, 2019
|
Silver (per ounce)
|
$14.38
|
May 29, 2019
|
$19.31
|
September 4, 2019
|
Zinc (per pound)
|
$1.00
|
September 3, 2019
|
$1.37
|
April 1, 2019
|
Lead (per pound)
|
$0.80
|
May 14, 2019
|
$1.03
|
October 29, 2019
|
•
|
a significant change in macroeconomic conditions, including commodity prices, treatment and refining charges or stock prices after the Company has committed to complete the transaction and established the purchase price or exchange ratio;
|
•
|
additional debt incurred or issued to fund some or all of acquisition consideration (as was the case with Silvertip and Wharf), resulting in increased interest expense and other borrowing costs;
|
•
|
issuance of equity securities as acquisition consideration (which occurred in the Sterling, Lincoln Hill and Silvertip project acquisitions), resulting in dilution of existing Company stockholders;
|
•
|
a material ore body may prove to be below expectations;
|
•
|
processing facilities may not operate as well as anticipated, and may require significant maintenance, downtime and capital investment, such as the mill at Silvertip;
|
•
|
difficulties integrating and assimilating the operations and personnel of any acquired companies, realizing anticipated synergies and maximizing the financial and strategic position of the combined enterprise, and maintaining uniform standards, policies and controls across the organization
|
•
|
difficulties or loss of social license to operate resulting from failure of efforts to establish positive relationships and/or agreements with local communities or local indigenous people; and
|
•
|
the acquired business or assets may have unknown liabilities which may be significant.
|
•
|
limit the Company’s ability to obtain additional financing, repurchase outstanding equity or issue debt securities;
|
•
|
require the Company to meet certain financial covenants consisting of a consolidated net leverage ratio and a consolidated interest coverage ratio;
|
•
|
require a portion of the Company’s cash flows to be dedicated to debt service payments instead of other purposes, which reduces the amount of cash flows available for working capital, capital expenditures, acquisitions and other general corporate purposes;
|
•
|
limit the Company’s ability to sell, transfer or otherwise dispose of assets, enter into transactions with and invest capital in affiliates, enter into agreements restricting our subsidiaries’ ability to pay dividends, consolidate, amalgamate, merge or sell all or substantially all of the Company’s assets;
|
•
|
increase our vulnerability to general adverse economic and industry conditions;
|
•
|
limit the Company’s flexibility in planning for and reacting to changes in the industry in which we compete; and
|
•
|
place the Company at a disadvantage compared to other, less leveraged competitors.
|
|
Palmarejo
|
|
Rochester
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Ore tons milled/placed
|
1,755,957
|
|
|
1,382,471
|
|
|
1,498,421
|
|
|
10,582,518
|
|
|
16,169,807
|
|
|
16,440,270
|
|
||||||
Ore grade gold (oz./ton)
|
0.08
|
|
|
0.10
|
|
|
0.09
|
|
|
0.003
|
|
|
0.004
|
|
|
0.003
|
|
||||||
Ore grade silver (oz./ton)
|
4.85
|
|
|
6.49
|
|
|
5.62
|
|
|
0.46
|
|
|
0.52
|
|
|
0.53
|
|
||||||
Recovery/Au oz. (%)
|
84.3
|
%
|
|
88.9
|
%
|
|
90.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Recovery/Ag oz. (%)
|
79.3
|
%
|
|
83.8
|
%
|
|
86.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gold produced (oz.)
|
111,932
|
|
|
122,722
|
|
|
121,569
|
|
|
35,400
|
|
|
54,388
|
|
|
51,051
|
|
||||||
Silver produced (oz.)
|
6,762,265
|
|
|
7,516,390
|
|
|
7,242,082
|
|
|
3,761,060
|
|
|
5,037,983
|
|
|
4,713,574
|
|
||||||
Costs applicable to sales per gold ounce(1)
|
$
|
685
|
|
|
$
|
561
|
|
|
$
|
588
|
|
|
$
|
1,251
|
|
|
$
|
941
|
|
|
$
|
889
|
|
Costs applicable to sales per silver ounce(1)
|
$
|
9.13
|
|
|
$
|
7.64
|
|
|
$
|
9.06
|
|
|
$
|
14.34
|
|
|
$
|
11.54
|
|
|
$
|
12.04
|
|
|
Kensington
|
|
Wharf
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Ore tons milled/placed
|
658,378
|
|
|
641,058
|
|
|
668,727
|
|
|
4,613,359
|
|
|
4,923,774
|
|
|
4,560,441
|
|
||||||
Ore grade gold (oz./ton)
|
0.21
|
|
|
0.18
|
|
|
0.18
|
|
|
0.023
|
|
|
0.022
|
|
|
0.027
|
|
||||||
Recovery/Au oz. (%)
|
91.0
|
%
|
|
92.3
|
%
|
|
93.5
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Gold produced (oz.) (2)
|
127,914
|
|
|
105,570
|
|
|
115,094
|
|
|
84,172
|
|
|
76,840
|
|
|
95,372
|
|
||||||
Costs applicable to sales per gold ounce(1)
|
$
|
917
|
|
|
$
|
1,055
|
|
|
$
|
922
|
|
|
$
|
937
|
|
|
$
|
879
|
|
|
$
|
693
|
|
|
Silvertip
|
|
Endeavor(4)
|
||||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Ore tons milled
|
236,547
|
|
|
49,454
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133,904
|
|
||||||
Ore grade silver (oz./ton)
|
6.84
|
|
|
6.19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.58
|
|
||||||
Ore grade zinc
|
7.1
|
%
|
|
6.2
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Ore grade lead
|
4.8
|
%
|
|
4.0
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Recovery/Ag oz. (%)
|
71.8
|
%
|
|
59.6
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50.6
|
|
||||||
Recovery/Zn lb. (%)
|
50.8
|
%
|
|
67.8
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Recovery/Pb lb. (%)
|
72.6
|
%
|
|
52.5
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Silver produced (oz.) (3)
|
1,161,926
|
|
|
182,254
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
107,026
|
|
||||||
Zinc produced (lb.) (3)
|
17,103,427
|
|
|
4,181,033
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Lead produced (lb.) (3)
|
16,555,622
|
|
|
2,072,013
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Costs applicable to sales per silver ounce(1)
|
$
|
49.23
|
|
|
$
|
55.91
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6.96
|
|
Costs applicable to sales per zinc pound(1)
|
$
|
1.74
|
|
|
$
|
3.34
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Costs applicable to sales per lead ounce(1)
|
$
|
1.21
|
|
|
$
|
3.23
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
San Bartolomé
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Ore tons milled
|
—
|
|
|
221,171
|
|
|
1,509,708
|
|
|||
Ore grade silver (oz./ton)
|
—
|
|
|
3.36
|
|
|
3.17
|
|
|||
Recovery/Ag oz. (%)
|
—
|
|
|
86.5
|
|
|
89.3
|
|
|||
Silver produced (oz.)
|
—
|
|
|
643,078
|
|
|
4,269,649
|
|
|||
Costs applicable to sales per silver ounce(1)
|
$
|
—
|
|
|
$
|
16.99
|
|
|
$
|
17.44
|
|
|
Gold Reserves at December 31, 2019(1)(2)(3)
|
|||||||||||||||||||||||||||
|
Proven Reserves
|
|
Probable Reserves
|
|
Proven and Probable Reserves
|
|
|
|||||||||||||||||||||
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces
(000s)
|
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces
(000s)
|
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces
(000s)
|
|
Metallurgical Recovery
|
|||||||||
Kensington(7)
|
898
|
|
|
0.200
|
|
|
180
|
|
|
779
|
|
|
0.239
|
|
|
186
|
|
|
1,677
|
|
|
0.218
|
|
|
366
|
|
|
95%
|
Palmarejo(4)
|
1,093
|
|
|
0.093
|
|
|
102
|
|
|
10,576
|
|
|
0.056
|
|
|
591
|
|
|
11,669
|
|
|
0.059
|
|
|
693
|
|
|
90%
|
Rochester(5)
|
249,815
|
|
|
0.003
|
|
|
710
|
|
|
13,577
|
|
|
0.002
|
|
|
27
|
|
|
263,392
|
|
|
0.003
|
|
|
737
|
|
|
92%
|
Wharf(8)
|
23,436
|
|
|
0.024
|
|
|
571
|
|
|
7,530
|
|
|
0.026
|
|
|
197
|
|
|
30,966
|
|
|
0.025
|
|
|
768
|
|
|
79%
|
Total Gold
|
275,242
|
|
|
|
|
1,563
|
|
|
32,462
|
|
|
|
|
1,001
|
|
|
307,704
|
|
|
|
|
2,564
|
|
|
|
|
Silver Reserves at December 31, 2019(1)(2)(3)
|
|||||||||||||||||||||||||||
|
Proven Reserves
|
|
Probable Reserves
|
|
Proven and Probable Reserves
|
|
|
|||||||||||||||||||||
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces (000s)
|
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces (000s)
|
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces (000s)
|
|
Metallurgical Recovery
|
|||||||||
Palmarejo(4)
|
1,093
|
|
|
5.17
|
|
|
5,649
|
|
|
10,576
|
|
|
4.24
|
|
|
44,843
|
|
|
11,669
|
|
|
4.33
|
|
|
50,492
|
|
|
84%
|
Rochester(5)
|
249,815
|
|
|
0.45
|
|
|
112,286
|
|
|
13,577
|
|
|
0.38
|
|
|
5,187
|
|
|
263,392
|
|
|
0.45
|
|
|
117,473
|
|
|
70%
|
Silvertip(6)
|
176
|
|
|
11.31
|
|
|
1,990
|
|
|
1,636
|
|
|
7.94
|
|
|
12,986
|
|
|
1,812
|
|
|
8.26
|
|
|
14,976
|
|
|
81%
|
Total Silver
|
251,084
|
|
|
|
|
119,925
|
|
|
25,789
|
|
|
|
|
63,016
|
|
|
276,873
|
|
|
|
|
182,941
|
|
|
|
|
Zinc Reserves at December 31, 2019(1)(2)(3)
|
|||||||||||||||||||||||||||
|
Proven Reserves
|
|
Probable Reserves
|
|
Proven and Probable Reserves
|
|
|
|||||||||||||||||||||
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Metallurgical Recovery
|
|||||||||
Silvertip(6)
|
176
|
|
|
9.84
|
|
|
34,577
|
|
|
1,636
|
|
|
7.97
|
|
|
260,847
|
|
|
1,812
|
|
|
8.15
|
|
|
295,424
|
|
|
82%
|
|
Lead Reserves at December 31, 2019(1)(2)(3)
|
|||||||||||||||||||||||||||
|
Proven Reserves
|
|
Probable Reserves
|
|
Proven and Probable Reserves
|
|
|
|||||||||||||||||||||
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Metallurgical Recovery
|
|||||||||
Silvertip(6)
|
176
|
|
|
8.07
|
|
|
28,366
|
|
|
1,636
|
|
|
5.14
|
|
|
168,096
|
|
|
1,812
|
|
|
5.42
|
|
|
196,462
|
|
|
88%
|
|
Gold Reserves at December 31, 2018(1)(2)(3)
|
|||||||||||||||||||||||||||
|
Proven Reserves
|
|
Probable Reserves
|
|
Proven and Probable Reserves
|
|
|
|||||||||||||||||||||
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces
(000s)
|
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces
(000s)
|
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces
(000s)
|
|
Metallurgical Recovery
|
|||||||||
Kensington(7)
|
1,600
|
|
|
0.186
|
|
|
298
|
|
|
986
|
|
|
0.258
|
|
|
254
|
|
|
2,586
|
|
|
0.213
|
|
|
552
|
|
|
95%
|
Palmarejo(4)
|
1,283
|
|
|
0.084
|
|
|
108
|
|
|
8,118
|
|
|
0.072
|
|
|
585
|
|
|
9,401
|
|
|
0.074
|
|
|
693
|
|
|
90%
|
Rochester(5)
|
228,413
|
|
|
0.003
|
|
|
657
|
|
|
13,166
|
|
|
0.002
|
|
|
27
|
|
|
241,579
|
|
|
0.003
|
|
|
684
|
|
|
92%
|
Wharf(8)
|
34,043
|
|
|
0.026
|
|
|
877
|
|
|
153
|
|
|
0.035
|
|
|
5
|
|
|
34,196
|
|
|
0.026
|
|
|
882
|
|
|
79%
|
Total Gold
|
265,339
|
|
|
|
|
1,940
|
|
|
22,423
|
|
|
|
|
871
|
|
|
287,762
|
|
|
|
|
2,811
|
|
|
|
|
Silver Reserves at December 31, 2018(1)(2)(3)
|
|||||||||||||||||||||||||||
|
Proven Reserves
|
|
Probable Reserves
|
|
Proven and Probable Reserves
|
|
|
|||||||||||||||||||||
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces (000s)
|
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces (000s)
|
|
Tons (000s)
|
|
Grade (oz./ton)
|
|
Ounces (000s)
|
|
Metallurgical Recovery
|
|||||||||
Palmarejo(4)
|
1,283
|
|
|
4.97
|
|
|
6,376
|
|
|
8,118
|
|
|
5.39
|
|
|
43,788
|
|
|
9,401
|
|
|
5.34
|
|
|
50,164
|
|
|
84%
|
Rochester(5)
|
228,413
|
|
|
0.44
|
|
|
101,058
|
|
|
13,166
|
|
|
0.39
|
|
|
5,141
|
|
|
241,579
|
|
|
0.44
|
|
|
106,199
|
|
|
70%
|
Silvertip(6)
|
280
|
|
|
10.81
|
|
|
3,026
|
|
|
1,489
|
|
|
7.98
|
|
|
11,885
|
|
|
1,769
|
|
|
8.43
|
|
|
14,911
|
|
|
81%
|
Total Silver
|
229,976
|
|
|
|
|
110,460
|
|
|
22,773
|
|
|
|
|
60,814
|
|
|
252,749
|
|
|
|
|
171,274
|
|
|
|
|
Zinc Reserves at December 31, 2018(1)(2)(3)
|
|||||||||||||||||||||||||||
|
Proven Reserves
|
|
Probable Reserves
|
|
Proven and Probable Reserves
|
|
|
|||||||||||||||||||||
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Metallurgical Recovery
|
|||||||||
Silvertip(6)
|
280
|
|
|
9.83
|
|
|
55,039
|
|
|
1,489
|
|
|
7.93
|
|
|
236,200
|
|
|
1,769
|
|
|
8.23
|
|
|
291,239
|
|
|
82%
|
|
Lead Reserves at December 31, 2018(1)(2)(3)
|
|||||||||||||||||||||||||||
|
Proven Reserves
|
|
Probable Reserves
|
|
Proven and Probable Reserves
|
|
|
|||||||||||||||||||||
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Tons (000s)
|
|
Grade (%)
|
|
Pounds
(000s)
|
|
Metallurgical Recovery
|
|||||||||
Silvertip(6)
|
280
|
|
|
7.53
|
|
|
42,156
|
|
|
1,489
|
|
|
5.22
|
|
|
155,305
|
|
|
1,769
|
|
|
5.58
|
|
|
197,461
|
|
|
88%
|
(1)
|
Certain definitions:
|
(2)
|
Assumed metal prices for 2019 Mineral Reserves were $17.00 per ounce of silver, $1,350 per ounce of gold, $1.15 per pound zinc, $0.95 per pound lead. Assumed metal prices for 2018 Mineral Reserves were $17.00 per ounce of silver, $1,250 per ounce of gold, $1.25 per pound of zinc and $1.00 per pound of lead.
|
(3)
|
Mineral reserve estimates were prepared by the Company’s technical staff.
|
(4)
|
The cutoff grade for mineral reserves is 1.97 to 2.00 g/tonne AuEq.
|
(5)
|
The cutoff grade for mineral reserves is 0.31 to 0.38 oz/ton AgEq.
|
(6)
|
The cutoff grade for mineral reserves is $130 to $160 net smelter return.
|
(7)
|
The cutoff grade for mineral reserves is 0.14 to 0.22 oz/ton Au.
|
(8)
|
The cutoff grade for mineral reserves is 0.011 oz/ton Au.
|
|
Mineralized Material at December 31, 2019(1)(2)(3)(4)
|
|||||||||||||
|
Tons (000s)
|
|
Gold Grade (oz./ton)
|
|
Silver Grade (oz./ton)
|
|
Lead Grade (percent)
|
|
Zinc Grade (percent)
|
|||||
Palmarejo Mine, Mexico(5)
|
8,764
|
|
|
0.048
|
|
|
3.94
|
|
|
—
|
|
|
—
|
|
Kensington Mine, USA(6)
|
3,226
|
|
|
0.236
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wharf Mine, USA(7)
|
11,557
|
|
|
0.029
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Rochester Mine, USA(8)
|
236,345
|
|
|
0.002
|
|
|
0.35
|
|
|
—
|
|
|
—
|
|
Silvertip Mine, Canada(9)
|
1,716
|
|
|
—
|
|
|
6.75
|
|
|
4.19
|
|
|
8.89
|
|
La Preciosa Project, Mexico(10)
|
28,677
|
|
|
0.006
|
|
|
3.67
|
|
|
—
|
|
|
—
|
|
Lincoln Hill Project, USA(11)
|
32,310
|
|
|
0.011
|
|
|
0.32
|
|
|
—
|
|
|
—
|
|
Total Mineralized Material
|
322,595
|
|
|
|
|
|
|
|
|
|
|
Mineralized Material at December 31, 2018(1)(2)(3)(4)
|
|||||||||||||
|
Tons (000s)
|
|
Gold Grade (oz./ton)
|
|
Silver Grade (oz./ton)
|
|
Lead Grade (percent)
|
|
Zinc Grade (percent)
|
|||||
Palmarejo Mine, Mexico(5)
|
8,149
|
|
|
0.056
|
|
|
4.30
|
|
|
—
|
|
|
—
|
|
Kensington Mine, USA(6)
|
2,681
|
|
|
0.250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Wharf Mine, USA(7)
|
8,696
|
|
|
0.034
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Rochester Mine, USA(8)
|
198,994
|
|
|
0.002
|
|
|
0.35
|
|
|
—
|
|
|
—
|
|
Silvertip Mine, Canada(9)
|
1,292
|
|
|
—
|
|
|
6.47
|
|
|
4.07
|
|
|
8.58
|
|
La Preciosa Project, Mexico(10)
|
28,677
|
|
|
0.006
|
|
|
3.67
|
|
|
—
|
|
|
—
|
|
Lincoln Hill Project, USA(11)
|
32,310
|
|
|
0.011
|
|
|
0.32
|
|
|
—
|
|
|
—
|
|
Total Mineralized Material
|
280,799
|
|
|
|
|
|
|
|
|
|
(1)
|
Assumed metal prices for 2019 estimated mineralized material were $20.00 per ounce of silver, $1,500 per ounce of gold, $1.30 per pound zinc, $1.05 per pound lead, except Lincoln Hill and Wilco at $1,350 per ounce gold and $22.00 per ounce silver, and Sterling at $1,200 per ounce of gold. Assumed metal prices for 2018 estimated mineralized material was $20.00 per ounce of silver, $1,4000 per ounce of gold, $1.30 per pound of zinc, $1.05 per pound of lead, and Sterling at $1,200 per ounce of gold.
|
(2)
|
Estimated with mining cost parameters and initial metallurgical test results.
|
(3)
|
Mineralized material estimates were completed by the Company’s technical staff, except for La Preciosa, which was completed by an external consultant supervised by technical company staff.
|
(4)
|
Estimated using 3-dimensional geologic modeling and geostatistical evaluation of the exploration drill data. Mineralized material is reported exclusive of reserves. “Mineralized material” as used in this Annual Report on Form 10-K, although permissible under Guide 7, does not indicate “reserves” by SEC standards. There is no certainty that any part of the reported mineralized material will ever be confirmed or converted into Guide 7 compliant “reserves”.
|
(5)
|
Cutoff grades for mineralized material is 1.97 to 2.00 g/tonne AuEq.
|
(6)
|
The cutoff grade for mineralized material is 0.12 to 0.19 oz/ton Au.
|
(7)
|
The cutoff grade for mineralized material is 0.010 oz/ton Au.
|
(8)
|
The cutoff grade for mineralized material is 0.27 to 0.32 oz/ton AgEq.
|
(9)
|
The cutoff grade for mineralized material is $130 net smelter return
|
(10)
|
The cutoff grade for mineralized material is 121.71 g/ton AgEq for underground, and 71.86 g/t for surface mining.
|
(11)
|
The cutoff grade for mineralized material 0.10 g/t AuEq for oxide and 0.20 g/t AuEg for sulfide material.
|
Item 5.
|
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
|
Dec.
2014
|
Dec.
2015 |
Dec.
2016 |
Dec.
2017 |
Dec.
2018 |
Dec.
2019
|
||||||
Coeur Mining
|
100.0
|
|
48.53
|
|
177.89
|
|
146.77
|
|
87.48
|
|
158.12
|
|
S&P 500 Index
|
100.0
|
|
101.38
|
|
113.51
|
|
138.29
|
|
132.23
|
|
173.86
|
|
Peer Group
|
100.0
|
|
70.67
|
|
127.84
|
|
142.15
|
|
129.13
|
|
206.98
|
|
Item 6.
|
Selected Financial Data
|
|
Year ended December 31,
|
||||||||||||||||||
In thousands except share data
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Revenue
|
$
|
711,502
|
|
|
$
|
625,904
|
|
|
$
|
709,598
|
|
|
$
|
571,897
|
|
|
$
|
561,407
|
|
Costs applicable to sales
|
551,181
|
|
|
440,950
|
|
|
440,260
|
|
|
335,375
|
|
|
403,827
|
|
|||||
Income (loss) from continuing operations
|
(346,896
|
)
|
|
(48,955
|
)
|
|
10,925
|
|
|
22,435
|
|
|
(287,811
|
)
|
|||||
Income (loss) from discontinued operations
|
5,693
|
|
|
550
|
|
|
(12,244
|
)
|
|
32,917
|
|
|
(79,372
|
)
|
|||||
Net income (loss)
|
$
|
(341,203
|
)
|
|
$
|
(48,405
|
)
|
|
$
|
(1,319
|
)
|
|
$
|
55,352
|
|
|
$
|
(367,183
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic income (loss) per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
$
|
(1.59
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.06
|
|
|
$
|
0.14
|
|
|
$
|
(2.22
|
)
|
Income (loss) from discontinued operations
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.21
|
|
|
$
|
(0.61
|
)
|
Basic
|
$
|
(1.56
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.35
|
|
|
$
|
(2.83
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted income (loss) per share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Income (loss) from continuing operations
|
$
|
(1.59
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.06
|
|
|
$
|
0.14
|
|
|
$
|
(2.22
|
)
|
Income (loss) from discontinued operations
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
(0.07
|
)
|
|
$
|
0.20
|
|
|
$
|
(0.61
|
)
|
Diluted
|
$
|
(1.56
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.34
|
|
|
$
|
(2.83
|
)
|
|
At December 31,
|
||||||||||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Total assets
|
$
|
1,378,636
|
|
|
$
|
1,712,500
|
|
|
$
|
1,701,175
|
|
|
$
|
1,318,909
|
|
|
$
|
1,332,489
|
|
Reclamation and mine closure liabilities
|
$
|
136,531
|
|
|
$
|
135,546
|
|
|
$
|
120,832
|
|
|
$
|
88,701
|
|
|
$
|
74,958
|
|
Debt, including current portion
|
$
|
295,497
|
|
|
$
|
458,826
|
|
|
$
|
411,322
|
|
|
$
|
210,637
|
|
|
$
|
485,505
|
|
Stockholders’ equity
|
$
|
667,004
|
|
|
$
|
852,512
|
|
|
$
|
814,977
|
|
|
$
|
768,487
|
|
|
$
|
421,476
|
|
•
|
Solid improvement in annual financial results - Revenue, operating cash flow and adjusted EBITDA1 increased 14%, 357% and 11%, respectively, in 2019. The year-over-year improvement in financial results reflects solid performance from the Company’s primary gold operations as well as higher precious metals prices in 2019
|
•
|
Three consecutive quarters of increasing, positive free cash flow1 - Coeur generated $39.3 million of operating cash flow and $18.4 million of free cash flow1 during the fourth quarter, representing a 63% increase in free cash flow1 compared to the prior period and a $36.1 million improvement in free cash flow1 compared to the fourth quarter of 2018. The third consecutive quarter of increasing, positive free cash flow1 was primarily driven by strong performance from Palmarejo, Kensington and Wharf operations
|
•
|
Positive results from high-pressure grinding roll (“HPGR”) unit at Rochester - 60-day silver recovery rates from HPGR-crushed ore are in-line with prior test work and appear significantly better than recoveries from traditionally-crushed material. Permitting and planning for Plan of Operations Amendment 11 (“POA 11”) expansion advancing on-schedule
|
•
|
$250.8 million impairment and temporarily suspending commercial activities at Silvertip - Reduction in carrying value of long-lived assets to approximately $150 million and temporary suspension of mining and processing activities driven by further deterioration in zinc and lead market conditions as well as processing facility-related challenges. The Company plans to (i) double its exploration investment in 2020 to potentially further expand the mineralized material and extend the mine life, and (ii) pursue a mill expansion to improve the asset’s cost structure and its ability to deliver sustainable cash flow
|
•
|
Success from 2019 exploration campaign delivers mineralization growth - The Company focused its exploration efforts primarily on expansion drilling in 2019. Measured and indicated mineralized material increased across all metals were higher year-over-year. Proven and probable silver reserves also increased, while zinc and lead reserves were consistent year-over-year
|
•
|
Over $160.0 million reduction in total debt - The Company ended the year with $295.5 million in total debt, compared to $458.8 million at the end of 2018. The 36% reduction in total debt2 reflects the results of Coeur’s deleveraging initiatives and improved financial performance during 2019
|
|
Year ended December 31,
|
||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
||||||
Financial Results from Continuing Operations:
|
|
|
|
|
|
||||||
Gold sales
|
$
|
493,347
|
|
|
$
|
427,008
|
|
|
$
|
494,249
|
|
Silver sales
|
$
|
191,478
|
|
|
$
|
193,153
|
|
|
$
|
215,349
|
|
Zinc sales
|
$
|
12,806
|
|
|
$
|
3,612
|
|
|
$
|
—
|
|
Lead sales
|
$
|
13,871
|
|
|
$
|
2,131
|
|
|
$
|
—
|
|
Consolidated Revenue
|
$
|
711,502
|
|
|
$
|
625,904
|
|
|
$
|
709,598
|
|
Net income (loss)
|
$
|
(346,896
|
)
|
|
$
|
(48,955
|
)
|
|
$
|
10,925
|
|
Net income (loss) per share, diluted
|
$
|
(1.59
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.06
|
|
Adjusted net income (loss)(1)
|
$
|
(54,583
|
)
|
|
$
|
(2,165
|
)
|
|
$
|
4,223
|
|
Adjusted net income (loss) per share, diluted(1)
|
$
|
(0.25
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.02
|
|
EBITDA(1)
|
$
|
(154,378
|
)
|
|
$
|
87,102
|
|
|
$
|
202,912
|
|
Adjusted EBITDA(1)
|
$
|
173,854
|
|
|
$
|
157,309
|
|
|
$
|
203,340
|
|
Total debt(2)
|
$
|
295,497
|
|
|
$
|
458,826
|
|
|
$
|
411,322
|
|
Operating Results from Continuing Operations:
|
|
|
|
|
|
||||||
Gold ounces produced
|
359,418
|
|
|
359,520
|
|
|
383,086
|
|
|||
Silver ounces produced
|
11,748,734
|
|
|
12,787,203
|
|
|
12,126,217
|
|
|||
Zinc pounds produced
|
17,103,427
|
|
|
4,181,033
|
|
|
—
|
|
|||
Lead pounds produced
|
16,555,622
|
|
|
2,072,013
|
|
|
—
|
|
|||
Gold ounces sold
|
367,650
|
|
|
350,508
|
|
|
410,604
|
|
|||
Silver ounces sold
|
11,914,567
|
|
|
12,354,817
|
|
|
12,698,635
|
|
|||
Zinc pounds sold
|
18,154,521
|
|
|
4,375,995
|
|
|
—
|
|
|||
Lead pounds sold
|
16,487,847
|
|
|
2,648,920
|
|
|
—
|
|
|||
Average realized price per gold ounce
|
$
|
1,342
|
|
|
$
|
1,218
|
|
|
$
|
1,204
|
|
Average realized price per silver ounce
|
$
|
16.07
|
|
|
$
|
15.65
|
|
|
$
|
16.96
|
|
Average realized price per zinc pound, gross
|
$
|
0.71
|
|
|
$
|
0.83
|
|
|
$
|
—
|
|
Average realized price per lead pound, gross
|
$
|
0.84
|
|
|
$
|
0.80
|
|
|
$
|
—
|
|
Financial and Operating Results from Discontinued Operations:(3)
|
|
|
|
|
|
||||||
Income (loss) from discontinued operations
|
$
|
5,693
|
|
|
$
|
550
|
|
|
$
|
(12,244
|
)
|
Silver ounces produced
|
—
|
|
|
643,078
|
|
|
4,269,649
|
|
|||
Gold ounces produced
|
—
|
|
|
78
|
|
|
358
|
|
|||
Silver ounces sold
|
—
|
|
|
704,479
|
|
|
4,240,901
|
|
|||
Gold ounces sold
|
—
|
|
|
292
|
|
|
111
|
|
|
Year ended December 31,
|
|
Increase
|
|
Percent
|
|||||||||
In thousands
|
2019
|
|
2018
|
|
(Decrease)
|
|
Change
|
|||||||
Gold sales
|
$
|
493,347
|
|
|
$
|
427,008
|
|
|
$
|
66,339
|
|
|
16
|
%
|
Silver sales
|
191,478
|
|
|
193,153
|
|
|
(1,675
|
)
|
|
(1
|
)%
|
|||
Zinc sales
|
12,806
|
|
|
3,612
|
|
|
9,194
|
|
|
255
|
%
|
|||
Lead sales
|
13,871
|
|
|
2,131
|
|
|
11,740
|
|
|
551
|
%
|
|||
Metal sales
|
$
|
711,502
|
|
|
$
|
625,904
|
|
|
$
|
85,598
|
|
|
14
|
%
|
|
Year ended December 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
Income and mining tax (expense) benefit at statutory rate
|
$
|
75,185
|
|
|
$
|
14,052
|
|
State tax provision from continuing operations
|
1,243
|
|
|
2,284
|
|
||
Change in valuation allowance
|
(77,220
|
)
|
|
2,471
|
|
||
Percentage depletion
|
820
|
|
|
89
|
|
||
Uncertain tax positions
|
2,358
|
|
|
1,830
|
|
||
U.S. and foreign permanent differences
|
2,272
|
|
|
3,314
|
|
||
Foreign exchange rates
|
(7,066
|
)
|
|
(3,973
|
)
|
||
Foreign inflation and indexing
|
(2,933
|
)
|
|
(2,374
|
)
|
||
Foreign tax rate differences
|
19,729
|
|
|
(24
|
)
|
||
Mining, foreign withholding, and other taxes
|
(2,746
|
)
|
|
(3,857
|
)
|
||
Other, net
|
(513
|
)
|
|
2,968
|
|
||
Income and mining tax (expense) benefit
|
$
|
11,129
|
|
|
$
|
16,780
|
|
|
Year ended December 31,
|
||||||||||||
|
2019
|
|
2018
|
||||||||||
In thousands
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
||||||||
United States
|
$
|
(16,702
|
)
|
$
|
(5,446
|
)
|
|
$
|
(50,522
|
)
|
$
|
16,819
|
|
Canada
|
(365,781
|
)
|
32,203
|
|
|
(43,793
|
)
|
16,436
|
|
||||
Mexico
|
25,002
|
|
(15,625
|
)
|
|
32,073
|
|
(16,092
|
)
|
||||
Other jurisdictions
|
(544
|
)
|
(3
|
)
|
|
(3,493
|
)
|
(383
|
)
|
||||
|
$
|
(358,025
|
)
|
$
|
11,129
|
|
|
$
|
(65,735
|
)
|
$
|
16,780
|
|
|
Year ended December 31,
|
||||||
In thousands
|
2018
|
|
2017
|
||||
Income and mining tax (expense) benefit at statutory rate
|
$
|
14,052
|
|
|
$
|
(14,037
|
)
|
State tax provision from continuing operations
|
2,284
|
|
|
26
|
|
||
Change in valuation allowance
|
2,471
|
|
|
86,712
|
|
||
Effect of tax legislation
|
—
|
|
|
(88,174
|
)
|
||
Percentage depletion
|
89
|
|
|
703
|
|
||
Uncertain tax positions
|
1,830
|
|
|
2,596
|
|
||
U.S. and foreign permanent differences
|
3,314
|
|
|
2,348
|
|
||
Foreign exchange rates
|
(3,973
|
)
|
|
(14,180
|
)
|
||
Foreign inflation and indexing
|
(2,374
|
)
|
|
(2,346
|
)
|
||
Foreign tax rate differences
|
(24
|
)
|
|
2,929
|
|
||
Mining, foreign withholding, and other taxes
|
(3,857
|
)
|
|
(11,274
|
)
|
||
Other, net
|
2,968
|
|
|
5,699
|
|
||
Income and mining tax (expense) benefit
|
$
|
16,780
|
|
|
$
|
(28,998
|
)
|
|
Year ended December 31,
|
||||||||||||
|
2018
|
|
2017
|
||||||||||
In thousands
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
||||||||
United States
|
$
|
(50,522
|
)
|
$
|
16,819
|
|
|
$
|
10,099
|
|
$
|
(5,635
|
)
|
Canada
|
(43,793
|
)
|
16,436
|
|
|
(3,176
|
)
|
979
|
|
||||
Mexico
|
32,073
|
|
(16,092
|
)
|
|
28,631
|
|
(25,958
|
)
|
||||
Other jurisdictions
|
(3,493
|
)
|
(383
|
)
|
|
4,369
|
|
1,616
|
|
||||
|
$
|
(65,735
|
)
|
$
|
16,780
|
|
|
$
|
39,923
|
|
$
|
(28,998
|
)
|
|
|
|
Gold
|
Silver
|
|
|
|
(oz)
|
(K oz)
|
Palmarejo
|
|
|
95,000 - 110,000
|
6,300 - 7,800
|
Rochester
|
|
|
27,000 - 33,000
|
4,000 - 5,500
|
Kensington
|
|
|
115,000 - 130,000
|
—
|
Wharf
|
|
|
80,000 - 90,000
|
—
|
Total
|
|
|
317,000 - 363,000
|
10,300 - 13,300
|
|
|
|
Gold
|
Silver
|
|
|
|
($/oz)
|
($/oz)
|
Palmarejo (co-product)
|
|
|
$785 - $885
|
$10.35 - $11.35
|
Rochester (co-product)
|
|
|
$1,175 - $1,325
|
$13.25 - $14.50
|
Kensington
|
|
|
$900 - $1,000
|
—
|
Wharf (by-product)
|
|
|
$1,025 - $1,125
|
—
|
|
|
|
|
($M)
|
Capital Expenditures, Sustaining
|
|
|
|
$65 - $80
|
Capital Expenditures, Development
|
|
|
|
$30 - $35
|
Exploration, Expensed
|
|
|
|
$38 - $44
|
Exploration, Capitalized
|
|
|
|
$6 - $10
|
General & Administrative Expenses
|
|
|
|
$32 - $36
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Tons milled
|
1,755,957
|
|
|
1,382,471
|
|
|
1,498,421
|
|
|||
Average gold grade (oz/t)
|
0.08
|
|
|
0.10
|
|
|
0.09
|
|
|||
Average silver grade (oz/t)
|
4.85
|
|
|
6.49
|
|
|
5.62
|
|
|||
Average recovery rate – Au
|
84.3
|
%
|
|
88.9
|
%
|
|
90.0
|
%
|
|||
Average recovery rate – Ag
|
79.3
|
%
|
|
83.8
|
%
|
|
86.0
|
%
|
|||
Gold ounces produced
|
111,932
|
|
|
122,722
|
|
|
121,569
|
|
|||
Silver ounces produced
|
6,762,265
|
|
|
7,516,390
|
|
|
7,242,082
|
|
|||
Gold ounces sold
|
116,104
|
|
|
115,592
|
|
|
131,743
|
|
|||
Silver ounces sold
|
6,841,380
|
|
|
7,229,179
|
|
|
7,586,154
|
|
|||
Costs applicable to sales per gold ounce(1)
|
$
|
685
|
|
|
$
|
561
|
|
|
$
|
588
|
|
Costs applicable to sales per silver ounce(1)
|
$
|
9.13
|
|
|
$
|
7.64
|
|
|
$
|
9.06
|
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Tons placed
|
10,582,518
|
|
|
16,169,807
|
|
|
16,440,270
|
|
|||
Average gold grade (oz/t)
|
0.003
|
|
|
0.004
|
|
|
0.003
|
|
|||
Average silver grade (oz/t)
|
0.46
|
|
|
0.52
|
|
|
0.53
|
|
|||
Gold ounces produced
|
35,400
|
|
|
54,388
|
|
|
51,051
|
|
|||
Silver ounces produced
|
3,761,060
|
|
|
5,037,983
|
|
|
4,713,574
|
|
|||
Gold ounces sold
|
36,052
|
|
|
52,789
|
|
|
54,642
|
|
|||
Silver ounces sold
|
3,844,556
|
|
|
4,854,579
|
|
|
4,931,368
|
|
|||
Costs applicable to sales per gold ounce(1)
|
$
|
1,251
|
|
|
$
|
941
|
|
|
$
|
889
|
|
Costs applicable to sales per silver ounce(1)
|
$
|
14.34
|
|
|
$
|
11.54
|
|
|
$
|
12.04
|
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Tons milled
|
658,378
|
|
|
641,058
|
|
|
668,727
|
|
|||
Average gold grade (oz/t)
|
0.21
|
|
|
0.18
|
|
|
0.18
|
|
|||
Average recovery rate
|
91.0
|
%
|
|
92.3
|
%
|
|
93.5
|
%
|
|||
Gold ounces produced
|
127,914
|
|
|
105,570
|
|
|
115,094
|
|
|||
Gold ounces sold
|
130,495
|
|
|
106,555
|
|
|
125,982
|
|
|||
Costs applicable to sales per gold ounce(1)
|
$
|
917
|
|
|
$
|
1,055
|
|
|
$
|
922
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Tons placed
|
4,613,359
|
|
|
4,923,774
|
|
|
4,560,441
|
|
|||
Average gold grade (oz/t)
|
0.023
|
|
|
0.022
|
|
|
0.027
|
|
|||
Gold ounces produced
|
84,172
|
|
|
76,840
|
|
|
95,372
|
|
|||
Silver ounces produced
|
63,483
|
|
|
50,576
|
|
|
63,535
|
|
|||
Gold ounces sold
|
84,999
|
|
|
75,572
|
|
|
98,237
|
|
|||
Silver ounces sold
|
64,161
|
|
|
48,085
|
|
|
74,086
|
|
|||
Costs applicable to sales per gold ounce(1)
|
$
|
937
|
|
|
$
|
879
|
|
|
$
|
693
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Tons milled
|
236,547
|
|
|
49,454
|
|
|
—
|
|
|||
Average silver grade (oz/t)
|
6.84
|
|
|
6.19
|
|
|
—
|
|
|||
Average zinc grade (%)
|
7.1
|
%
|
|
6.2
|
%
|
|
—
|
|
|||
Average lead grade (%)
|
4.8
|
%
|
|
4.0
|
%
|
|
—
|
|
|||
Average recovery rate – Ag
|
71.8
|
%
|
|
59.6
|
%
|
|
—
|
|
|||
Average recovery rate – Zn
|
50.8
|
%
|
|
67.8
|
%
|
|
—
|
|
|||
Average recovery rate – Pb
|
72.6
|
%
|
|
52.5
|
%
|
|
—
|
|
|||
Silver ounces produced
|
1,161,926
|
|
|
182,254
|
|
|
—
|
|
|||
Zinc pounds produced
|
17,103,427
|
|
|
4,181,033
|
|
|
—
|
|
|||
Lead pounds produced
|
16,555,622
|
|
|
2,072,013
|
|
|
—
|
|
|||
Silver ounces sold
|
1,164,470
|
|
|
222,974
|
|
|
—
|
|
|||
Zinc pounds sold
|
18,154,521
|
|
|
4,375,995
|
|
|
—
|
|
|||
Lead pounds sold
|
16,487,847
|
|
|
2,648,920
|
|
|
—
|
|
|||
Costs applicable to sales per silver ounce(1)
|
$
|
31.92
|
|
|
$
|
55.91
|
|
|
$
|
—
|
|
Costs applicable to sales per zinc pound(1)
|
$
|
2.34
|
|
|
$
|
3.34
|
|
|
$
|
—
|
|
Costs applicable to sales per lead ounce(1)
|
$
|
1.76
|
|
|
$
|
3.23
|
|
|
$
|
—
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Year ended December 31,
|
||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flow before changes in operating assets and liabilities
|
$
|
134,234
|
|
|
$
|
112,350
|
|
|
$
|
145,201
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Receivables
|
(2,739
|
)
|
|
(9,260
|
)
|
|
18,895
|
|
|||
Prepaid expenses and other
|
280
|
|
|
4,876
|
|
|
(2,015
|
)
|
|||
Inventories
|
(62,998
|
)
|
|
(44,488
|
)
|
|
23,517
|
|
|||
Accounts payable and accrued liabilities
|
23,103
|
|
|
(43,370
|
)
|
|
11,562
|
|
|||
Cash provided by (used in) continuing operating activities
|
$
|
91,880
|
|
|
$
|
20,108
|
|
|
$
|
197,160
|
|
|
Payments Due by Period
|
||||||||||||||||||
Contractual Obligations
|
Total
|
|
Less Than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
||||||||||
Long-term debt obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
2024 Senior Notes
|
$
|
230,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
230,000
|
|
|
$
|
—
|
|
Revolving Credit Facility(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Interest on debt
|
$
|
61,657
|
|
|
14,642
|
|
|
41,385
|
|
|
5,630
|
|
|
—
|
|
||||
|
291,657
|
|
|
14,642
|
|
|
41,385
|
|
|
235,630
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Finance lease obligations(2)
|
75,879
|
|
|
25,661
|
|
|
42,171
|
|
|
7,912
|
|
|
135
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating lease obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Hyak mining lease (Kensington mine)
|
885
|
|
|
291
|
|
|
594
|
|
|
—
|
|
|
—
|
|
|||||
Operating leases
|
60,181
|
|
|
13,319
|
|
|
25,807
|
|
|
21,055
|
|
|
—
|
|
|||||
|
61,066
|
|
|
13,610
|
|
|
26,401
|
|
|
21,055
|
|
|
—
|
|
|||||
Other long-term obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Reclamation and mine closure(3)
|
344,760
|
|
|
3,114
|
|
|
5,307
|
|
|
52,306
|
|
|
284,033
|
|
|||||
Severance payments(4)
|
7,817
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,817
|
|
|||||
Unrecognized tax benefits(5)
|
3,690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other long-term obligations
|
17,730
|
|
|
1,175
|
|
|
2,349
|
|
|
2,314
|
|
|
11,892
|
|
|||||
|
373,997
|
|
|
4,289
|
|
|
7,656
|
|
|
54,620
|
|
|
303,742
|
|
|||||
Total
|
$
|
802,599
|
|
|
$
|
58,202
|
|
|
$
|
117,613
|
|
|
$
|
319,217
|
|
|
$
|
303,877
|
|
(1)
|
The Company had all $250.0 million available under the Facility as of December 31, 2019.
|
(2)
|
The Company has entered into various finance lease agreements for commitments primarily over the next five years.
|
(3)
|
Reclamation and mine closure amounts represent the Company’s estimate of the cash flows associated with its legal obligation to reclaim mining properties. This amount will decrease as reclamation work is completed. Amounts shown on the table are undiscounted.
|
(4)
|
Accrued government-mandated severance at the Palmarejo complex.
|
(5)
|
The Company is unable to reasonably estimate the timing of recognition of unrecognized tax benefits beyond 2019 due to uncertainties in the timing of the effective settlement of tax positions.
|
|
Year ended December 31,
|
||||||||||
In thousands except per share amounts
|
2019
|
|
2018
|
|
2017
|
||||||
Net income (loss)
|
$
|
(341,203
|
)
|
|
$
|
(48,405
|
)
|
|
$
|
(1,319
|
)
|
(Income) loss from discontinued operations, net of tax
|
(5,693
|
)
|
|
(550
|
)
|
|
12,244
|
|
|||
Fair value adjustments, net
|
(16,030
|
)
|
|
(3,638
|
)
|
|
864
|
|
|||
Foreign exchange loss (gain)
|
5,900
|
|
|
8,611
|
|
|
1,562
|
|
|||
(Gain) loss on sale of assets and securities
|
714
|
|
|
(19
|
)
|
|
1
|
|
|||
Impairment of long-lived assets
|
250,814
|
|
|
—
|
|
|
—
|
|
|||
Silvertip inventory write-down
|
64,610
|
|
|
26,720
|
|
|
—
|
|
|||
Wharf inventory write-down
|
3,596
|
|
|
—
|
|
|
—
|
|
|||
Loss on debt extinguishment
|
1,282
|
|
|
—
|
|
|
9,342
|
|
|||
Receivable write-down
|
1,040
|
|
|
6,536
|
|
|
—
|
|
|||
Interest income on notes receivables
|
(198
|
)
|
|
(1,776
|
)
|
|
—
|
|
|||
Manquiri sale consideration write-down
|
—
|
|
|
18,599
|
|
|
—
|
|
|||
Rochester In-Pit crusher write-down
|
—
|
|
|
3,441
|
|
|
—
|
|
|||
Mexico inflation adjustment
|
—
|
|
|
(1,939
|
)
|
|
—
|
|
|||
Transaction costs
|
—
|
|
|
5
|
|
|
3,757
|
|
|||
Impairment of equity and debt securities
|
—
|
|
|
—
|
|
|
426
|
|
|||
Gain on sale of Joaquin project
|
—
|
|
|
—
|
|
|
(21,138
|
)
|
|||
Gain on repurchase of Rochester royalty
|
—
|
|
|
—
|
|
|
(2,332
|
)
|
|||
Tax effect of adjustments(1)
|
(19,415
|
)
|
|
(9,750
|
)
|
|
816
|
|
|||
Adjusted net income (loss)
|
$
|
(54,583
|
)
|
|
$
|
(2,165
|
)
|
|
$
|
4,223
|
|
|
|
|
|
|
|
||||||
Adjusted net income (loss) per share - Basic
|
$
|
(0.25
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.02
|
|
Adjusted net income (loss) per share - Diluted
|
$
|
(0.25
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
0.02
|
|
|
Year ended December 31,
|
||||||||||
In thousands except per share amounts
|
2019
|
|
2018
|
|
2017
|
||||||
Net income (loss)
|
$
|
(341,203
|
)
|
|
$
|
(48,405
|
)
|
|
$
|
(1,319
|
)
|
(Income) loss from discontinued operations, net of tax
|
(5,693
|
)
|
|
(550
|
)
|
|
12,244
|
|
|||
Interest expense, net of capitalized interest
|
24,771
|
|
|
24,364
|
|
|
16,440
|
|
|||
Income tax provision (benefit)
|
(11,129
|
)
|
|
(16,780
|
)
|
|
28,998
|
|
|||
Amortization
|
178,876
|
|
|
128,473
|
|
|
146,549
|
|
|||
EBITDA
|
(154,378
|
)
|
|
87,102
|
|
|
202,912
|
|
|||
Fair value adjustments, net
|
(16,030
|
)
|
|
(3,638
|
)
|
|
864
|
|
|||
Foreign exchange (gain) loss
|
4,346
|
|
|
9,069
|
|
|
(1,281
|
)
|
|||
Asset retirement obligation accretion
|
12,154
|
|
|
11,116
|
|
|
8,983
|
|
|||
Inventory adjustments and write-downs
|
5,904
|
|
|
2,093
|
|
|
1,806
|
|
|||
(Gain) loss on sale of assets and securities
|
714
|
|
|
(19
|
)
|
|
1
|
|
|||
Impairment of long-lived assets
|
250,814
|
|
|
—
|
|
|
—
|
|
|||
Silvertip inventory write-down
|
64,610
|
|
|
26,720
|
|
|
—
|
|
|||
Wharf inventory write-down
|
3,596
|
|
|
—
|
|
|
—
|
|
|||
Loss on debt extinguishment
|
1,282
|
|
|
—
|
|
|
9,342
|
|
|||
Receivable write-down
|
1,040
|
|
|
6,536
|
|
|
—
|
|
|||
Interest income on notes receivables
|
(198
|
)
|
|
(1,776
|
)
|
|
—
|
|
|||
Manquiri sale consideration write-down
|
—
|
|
|
18,599
|
|
|
—
|
|
|||
Rochester In-Pit crusher write-down
|
—
|
|
|
3,441
|
|
|
—
|
|
|||
Mexico inflation adjustment
|
—
|
|
|
(1,939
|
)
|
|
—
|
|
|||
Transaction costs
|
—
|
|
|
5
|
|
|
3,757
|
|
|||
Gain on sale of Joaquin project
|
—
|
|
|
—
|
|
|
(21,138
|
)
|
|||
Gain on repurchase of Rochester royalty
|
—
|
|
|
—
|
|
|
(2,332
|
)
|
|||
Impairment of equity and debt securities
|
—
|
|
|
—
|
|
|
426
|
|
|||
Adjusted EBITDA
|
$
|
173,854
|
|
|
$
|
157,309
|
|
|
$
|
203,340
|
|
|
Year ended December 31,
|
||||||||||
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flow from continuing operations
|
$
|
91,880
|
|
|
$
|
20,108
|
|
|
$
|
197,160
|
|
Capital expenditures from continuing operations
|
99,772
|
|
|
140,787
|
|
|
136,734
|
|
|||
Free cash flow
|
$
|
(7,892
|
)
|
|
(120,679
|
)
|
|
60,426
|
|
In thousands except per ounce or per pound amounts
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Total
|
||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
$
|
201,306
|
|
|
$
|
118,246
|
|
|
$
|
170,194
|
|
|
$
|
92,969
|
|
|
$
|
145,496
|
|
|
$
|
728,211
|
|
Amortization
|
(59,379
|
)
|
|
(18,041
|
)
|
|
(50,592
|
)
|
|
(12,280
|
)
|
|
(36,738
|
)
|
|
(177,030
|
)
|
||||||
Costs applicable to sales
|
$
|
141,927
|
|
|
$
|
100,205
|
|
|
$
|
119,602
|
|
|
$
|
80,689
|
|
|
$
|
108,758
|
|
|
$
|
551,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metal Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ounces
|
116,104
|
|
|
36,052
|
|
|
130,495
|
|
|
84,999
|
|
|
|
|
367,650
|
|
|||||||
Silver ounces
|
6,841,380
|
|
|
3,844,556
|
|
|
|
|
64,161
|
|
|
1,164,470
|
|
|
11,914,567
|
|
|||||||
Zinc pounds
|
|
|
|
|
|
|
|
|
18,154,521
|
|
|
18,154,521
|
|
||||||||||
Lead pounds
|
|
|
|
|
|
|
|
|
16,487,847
|
|
|
16,487,847
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ($/oz)
|
$
|
685
|
|
|
$
|
1,251
|
|
|
$
|
917
|
|
|
$
|
937
|
|
|
|
|
|
||||
Silver ($/oz)
|
$
|
9.13
|
|
|
$
|
14.34
|
|
|
|
|
|
|
$
|
31.92
|
|
|
|
||||||
Zinc ($/lb)
|
|
|
|
|
|
|
|
|
$
|
2.34
|
|
|
|
||||||||||
Lead ($/lb)
|
|
|
|
|
|
|
|
|
$
|
1.76
|
|
|
|
In thousands except per ounce or per pound amounts
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Total
|
||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
$
|
180,832
|
|
|
$
|
126,586
|
|
|
$
|
141,872
|
|
|
$
|
78,273
|
|
|
$
|
40,855
|
|
|
$
|
568,418
|
|
Amortization
|
(60,744
|
)
|
|
(20,909
|
)
|
|
(29,508
|
)
|
|
(11,072
|
)
|
|
(5,235
|
)
|
|
(127,468
|
)
|
||||||
Costs applicable to sales
|
$
|
120,088
|
|
|
$
|
105,677
|
|
|
$
|
112,364
|
|
|
$
|
67,201
|
|
|
$
|
35,620
|
|
|
$
|
440,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metal Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ounces
|
115,592
|
|
|
52,789
|
|
|
106,555
|
|
|
75,572
|
|
|
|
|
350,508
|
|
|||||||
Silver ounces
|
7,229,179
|
|
|
4,854,579
|
|
|
|
|
48,085
|
|
|
222,974
|
|
|
12,354,817
|
|
|||||||
Zinc pounds
|
|
|
|
|
|
|
|
|
4,375,995
|
|
|
4,375,995
|
|
||||||||||
Lead pounds
|
|
|
|
|
|
|
|
|
2,648,920
|
|
|
2,648,920
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ($/oz)
|
$
|
561
|
|
|
$
|
941
|
|
|
$
|
1,055
|
|
|
$
|
879
|
|
|
|
|
|
||||
Silver ($/oz)
|
$
|
7.64
|
|
|
$
|
11.54
|
|
|
|
|
|
|
$
|
55.91
|
|
|
|
||||||
Zinc ($/lb)
|
|
|
|
|
|
|
|
|
$
|
3.34
|
|
|
|
||||||||||
Lead ($/lb)
|
|
|
|
|
|
|
|
|
$
|
3.23
|
|
|
|
In thousands except per ounce or per pound amounts
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Endeavor
|
|
Total
|
||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
$
|
219,920
|
|
|
$
|
130,227
|
|
|
$
|
152,118
|
|
|
$
|
82,334
|
|
|
$
|
1,046
|
|
|
$
|
585,645
|
|
Amortization
|
(73,744
|
)
|
|
(22,306
|
)
|
|
(36,022
|
)
|
|
(13,012
|
)
|
|
(301
|
)
|
|
(145,385
|
)
|
||||||
Costs applicable to sales
|
$
|
146,176
|
|
|
$
|
107,921
|
|
|
$
|
116,096
|
|
|
$
|
69,322
|
|
|
$
|
745
|
|
|
$
|
440,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metal Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ounces
|
131,743
|
|
|
54,642
|
|
|
125,982
|
|
|
98,237
|
|
|
|
|
410,604
|
|
|||||||
Silver ounces
|
7,586,154
|
|
|
4,931,368
|
|
|
|
|
74,086
|
|
|
107,027
|
|
|
12,698,635
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ($/oz)
|
$
|
588
|
|
|
$
|
889
|
|
|
$
|
922
|
|
|
$
|
693
|
|
|
|
|
|
||||
Silver ($/oz)
|
$
|
9.06
|
|
|
$
|
12.04
|
|
|
|
|
|
|
$
|
6.96
|
|
|
|
In thousands except per ounce amounts
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
$
|
214,717
|
|
|
$
|
132,647
|
|
|
$
|
184,651
|
|
|
$
|
100,828
|
|
Amortization
|
(57,235
|
)
|
|
(20,798
|
)
|
|
(62,001
|
)
|
|
(13,403
|
)
|
||||
Costs applicable to sales
|
$
|
157,482
|
|
|
$
|
111,849
|
|
|
$
|
122,650
|
|
|
$
|
87,425
|
|
By-product credit
|
—
|
|
|
—
|
|
|
—
|
|
|
(806
|
)
|
||||
Adjusted costs applicable to sales
|
$
|
157,482
|
|
|
$
|
111,849
|
|
|
$
|
122,650
|
|
|
$
|
86,619
|
|
|
|
|
|
|
|
|
|
||||||||
Metal Sales
|
|
|
|
|
|
|
|
||||||||
Gold ounces
|
102,500
|
|
|
30,000
|
|
|
125,000
|
|
|
82,200
|
|
||||
Silver ounces
|
7,000,000
|
|
|
5,300,000
|
|
|
—
|
|
|
46,700
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Revenue Split
|
|
|
|
|
|
|
|
||||||||
Gold
|
53%
|
|
35%
|
|
100%
|
|
100%
|
||||||||
Silver
|
47%
|
|
65%
|
|
—
|
|
—
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Adjusted costs applicable to sales
|
|
|
|
|
|
|
|
||||||||
Gold ($/oz)
|
$785 - $885
|
|
$1,175 - $1,325
|
|
$900 - $1,000
|
|
$1,025 - $1,125
|
||||||||
Silver ($/oz)
|
$10.35 - $11.35
|
|
$13.25 - $14.50
|
|
|
|
|
•
|
We obtained and tested Rochester’s 2019 roll forward of the estimated ounces and costs added to, recovered from, and the resulting ending amounts of ounces and costs of the ore on leach pads balance, including testing of certain assumptions, such as recovery rates and ore grades.
|
•
|
For the roll forward of estimated ounces, we assessed the completeness and accuracy of mining production information, including crusher tonnage data and truck load tonnage information.
|
•
|
We evaluated management’s laboratory procedures related to assay testing used to estimate ore grade.
|
•
|
We evaluated the company’s use of specialists and their qualifications and experience related to their input on the recovery rates and ore grades estimates used by management in its calculation of ore on leach pads.
|
•
|
We assessed the estimated timing of recoveries, which management uses in classifying current and non-current portions of the ore on leach pads balance.
|
•
|
We tested the operating effectiveness of management’s controls over mining production information, estimating the recovery rates, ore grades, and inventory roll forward related to recording Rochester’s balance of ore on lead pads.
|
•
|
We obtained management’s estimate of future reclamation costs, and compared a sample of estimated reclamation costs to appropriate underlying documentation, such as vendor support.
|
•
|
We compared a sample of the timing of the estimated reclamation costs to appropriate underlying documentation, such as the life of mine plans.
|
•
|
We evaluated the competence and objectivity of the management’s specialists who assisted with determining the reclamation cost estimates.
|
•
|
We obtained management’s calculation of the reclamation liability and evaluated the appropriateness of significant inputs, such as the estimated discount rates.
|
•
|
We tested the operating effectiveness of management’s controls over estimating the future reclamation costs, the timing of these costs and inputs into the calculation of the reclamation liability, such as estimated discount rates.
|
•
|
We obtained and tested management’s discounted future cash flow calculation, including significant assumptions such as estimated quantities of recoverable minerals, expected lead, zinc and silver prices, treatment charges, production levels, operating costs, capital requirements, and discount rates.
|
•
|
We evaluated the competence and objectivity of the management’s specialists who assisted with preparing the discounted cash flow analysis, including those involved in determining the recoverable minerals.
|
•
|
We compared the amount of proven and probable reserves and an estimated value for mineralization other that proven and probable reserves to publicly available information.
|
•
|
We compared the expected lead, zinc and silver pricing to available market information
|
•
|
We evaluated the reasonableness for management’s forecasts of production levels, operating costs, and capital requirement by comparing to historical results and internal communications to management and the Board of Directors and external communications made by management to analysts and investors
|
•
|
We utilized a valuation specialist to assist in testing the discount rate included in the Company’s discounted cash flow calculation
|
•
|
We tested the operating effectiveness of management’s controls over the discounted future cash flow calculation, including the controls related the development of the associated assumptions.
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
ASSETS
|
Notes
|
In thousands, except share data
|
||||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
55,645
|
|
|
$
|
115,081
|
|
Receivables
|
5
|
18,666
|
|
|
29,744
|
|
||
Inventory
|
6
|
55,886
|
|
|
66,279
|
|
||
Ore on leach pads
|
6
|
66,192
|
|
|
75,122
|
|
||
Prepaid expenses and other
|
|
14,047
|
|
|
11,393
|
|
||
|
|
210,436
|
|
|
297,619
|
|
||
NON-CURRENT ASSETS
|
|
|
|
|
||||
Property, plant and equipment, net
|
8
|
248,789
|
|
|
298,451
|
|
||
Mining properties, net
|
9
|
711,955
|
|
|
971,567
|
|
||
Ore on leach pads
|
6
|
71,539
|
|
|
66,964
|
|
||
Restricted assets
|
|
8,752
|
|
|
12,133
|
|
||
Equity and debt securities
|
7
|
35,646
|
|
|
17,806
|
|
||
Receivables
|
5
|
28,709
|
|
|
31,151
|
|
||
Other
|
|
62,810
|
|
|
16,809
|
|
||
TOTAL ASSETS
|
|
$
|
1,378,636
|
|
|
$
|
1,712,500
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Accounts payable
|
|
$
|
69,176
|
|
|
$
|
47,210
|
|
Accrued liabilities and other
|
23
|
95,616
|
|
|
82,619
|
|
||
Debt
|
12
|
22,746
|
|
|
24,937
|
|
||
Reclamation
|
13
|
3,114
|
|
|
6,552
|
|
||
|
|
190,652
|
|
|
161,318
|
|
||
NON-CURRENT LIABILITIES
|
|
|
|
|
||||
Debt
|
12
|
272,751
|
|
|
433,889
|
|
||
Reclamation
|
13
|
133,417
|
|
|
128,994
|
|
||
Deferred tax liabilities
|
|
41,976
|
|
|
79,070
|
|
||
Other long-term liabilities
|
|
72,836
|
|
|
56,717
|
|
||
|
|
520,980
|
|
|
698,670
|
|
||
COMMITMENTS AND CONTINGENCIES
|
21
|
|
|
|
||||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 241,529,021 issued and outstanding at December 31, 2019 and 203,310,443 at December 31, 2018
|
|
2,415
|
|
|
2,033
|
|
||
Additional paid-in capital
|
|
3,598,472
|
|
|
3,443,082
|
|
||
Accumulated other comprehensive income (loss)
|
|
(136
|
)
|
|
(59
|
)
|
||
Accumulated deficit
|
|
(2,933,747
|
)
|
|
(2,592,544
|
)
|
||
|
|
667,004
|
|
|
852,512
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
1,378,636
|
|
|
$
|
1,712,500
|
|
|
|
Year ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
Notes
|
In thousands, except share data
|
||||||||||
Revenue
|
3
|
$
|
711,502
|
|
|
$
|
625,904
|
|
|
$
|
709,598
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
||||||
Costs applicable to sales(1)
|
3
|
551,181
|
|
|
440,950
|
|
|
440,260
|
|
|||
Amortization
|
|
178,876
|
|
|
128,473
|
|
|
146,549
|
|
|||
General and administrative
|
|
34,493
|
|
|
31,345
|
|
|
33,616
|
|
|||
Exploration
|
|
22,527
|
|
|
25,397
|
|
|
30,311
|
|
|||
Impairment of long-lived assets
|
4
|
250,814
|
|
|
—
|
|
|
—
|
|
|||
Pre-development, reclamation, and other
|
|
18,421
|
|
|
20,043
|
|
|
18,936
|
|
|||
Total costs and expenses
|
|
1,056,312
|
|
|
646,208
|
|
|
669,672
|
|
|||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
||||||
Loss on debt extinguishment
|
12
|
(1,281
|
)
|
|
—
|
|
|
(9,342
|
)
|
|||
Fair value adjustments, net
|
16
|
16,030
|
|
|
3,638
|
|
|
(864
|
)
|
|||
Interest expense, net of capitalized interest
|
12
|
(24,771
|
)
|
|
(24,364
|
)
|
|
(16,440
|
)
|
|||
Other, net
|
18
|
(3,193
|
)
|
|
(24,705
|
)
|
|
26,643
|
|
|||
Total other income (expense), net
|
|
(13,215
|
)
|
|
(45,431
|
)
|
|
(3
|
)
|
|||
Income (loss) before income and mining taxes
|
|
(358,025
|
)
|
|
(65,735
|
)
|
|
39,923
|
|
|||
Income and mining tax (expense) benefit
|
14
|
11,129
|
|
|
16,780
|
|
|
(28,998
|
)
|
|||
Income (loss) from continuing operations
|
|
$
|
(346,896
|
)
|
|
$
|
(48,955
|
)
|
|
$
|
10,925
|
|
Income (loss) from discontinued operations
|
22
|
5,693
|
|
|
550
|
|
|
(12,244
|
)
|
|||
NET INCOME (LOSS)
|
|
$
|
(341,203
|
)
|
|
$
|
(48,405
|
)
|
|
$
|
(1,319
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
||||||
Unrealized gain (loss) on cash flow hedges
|
|
(136
|
)
|
|
—
|
|
|
—
|
|
|||
Unrealized gain (loss) on debt and equity securities
|
|
59
|
|
|
26
|
|
|
3,227
|
|
|||
Reclassification adjustments for impairment of equity securities
|
|
—
|
|
|
—
|
|
|
426
|
|
|||
Reclassification adjustments for realized (gain) loss on sale of equity securities
|
|
—
|
|
|
—
|
|
|
1,354
|
|
|||
Other comprehensive income (loss)
|
|
(77
|
)
|
|
26
|
|
|
5,007
|
|
|||
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
(341,280
|
)
|
|
$
|
(48,379
|
)
|
|
$
|
3,688
|
|
|
|
|
|
|
|
|
||||||
NET INCOME (LOSS) PER SHARE
|
19
|
|
|
|
|
|
||||||
Basic income (loss) per share:
|
|
|
|
|
|
|
||||||
Net income (loss) from continuing operations
|
|
$
|
(1.59
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.06
|
|
Net income (loss) from discontinued operations
|
|
0.03
|
|
|
—
|
|
|
(0.07
|
)
|
|||
Basic(2)
|
|
$
|
(1.56
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.01
|
)
|
Diluted income (loss) per share:
|
|
|
|
|
|
|
||||||
Net income (loss) from continuing operations
|
|
$
|
(1.59
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.06
|
|
Net income (loss) from discontinued operations
|
|
0.03
|
|
|
—
|
|
|
(0.07
|
)
|
|||
Diluted(2)
|
|
$
|
(1.56
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.01
|
)
|
|
|
Year ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
Notes
|
In thousands
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Net income (loss)
|
|
$
|
(341,203
|
)
|
|
$
|
(48,405
|
)
|
|
$
|
(1,319
|
)
|
(Income) loss from discontinued operations
|
|
(5,693
|
)
|
|
(550
|
)
|
|
12,244
|
|
|||
Adjustments:
|
|
|
|
|
|
|
||||||
Amortization
|
|
178,876
|
|
|
128,473
|
|
|
146,549
|
|
|||
Accretion
|
|
12,147
|
|
|
13,933
|
|
|
9,980
|
|
|||
Deferred taxes
|
|
(36,817
|
)
|
|
(48,441
|
)
|
|
(13,888
|
)
|
|||
Loss on debt extinguishment
|
12
|
1,281
|
|
|
—
|
|
|
9,342
|
|
|||
Fair value adjustments, net
|
16
|
(16,030
|
)
|
|
(3,638
|
)
|
|
864
|
|
|||
Stock-based compensation
|
15
|
9,189
|
|
|
8,328
|
|
|
10,541
|
|
|||
Gain on sale of the Joaquin project
|
|
—
|
|
|
—
|
|
|
(21,138
|
)
|
|||
Impairment of long-lived assets
|
4
|
250,814
|
|
|
—
|
|
|
—
|
|
|||
Write-downs
|
5,6
|
69,246
|
|
|
55,297
|
|
|
—
|
|
|||
Deferred revenue recognition
|
21
|
(1,857
|
)
|
|
—
|
|
|
—
|
|
|||
Other
|
|
14,281
|
|
|
7,353
|
|
|
(7,974
|
)
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||||||
Receivables
|
|
(2,739
|
)
|
|
(9,260
|
)
|
|
18,895
|
|
|||
Prepaid expenses and other current assets
|
|
280
|
|
|
4,876
|
|
|
(2,015
|
)
|
|||
Inventory and ore on leach pads
|
|
(62,998
|
)
|
|
(44,488
|
)
|
|
23,517
|
|
|||
Accounts payable and accrued liabilities
|
|
23,103
|
|
|
(43,370
|
)
|
|
11,562
|
|
|||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS
|
|
91,880
|
|
|
20,108
|
|
|
197,160
|
|
|||
CASH PROVIDED BY (USED IN )OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
(2,690
|
)
|
|
11,296
|
|
|||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
|
91,880
|
|
|
17,418
|
|
|
208,456
|
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Capital expenditures
|
|
(99,772
|
)
|
|
(140,787
|
)
|
|
(136,734
|
)
|
|||
Acquisitions, net
|
10
|
—
|
|
|
6,914
|
|
|
(156,248
|
)
|
|||
Proceeds from the sale of assets
|
|
1,033
|
|
|
577
|
|
|
16,705
|
|
|||
Purchase of investments
|
|
(5,023
|
)
|
|
(426
|
)
|
|
(15,058
|
)
|
|||
Sale of investments
|
|
2,109
|
|
|
12,713
|
|
|
11,321
|
|
|||
Proceeds from notes receivable
|
|
7,168
|
|
|
19,000
|
|
|
—
|
|
|||
Other
|
|
1,919
|
|
|
11
|
|
|
2,864
|
|
|||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS
|
|
(92,566
|
)
|
|
(101,998
|
)
|
|
(277,150
|
)
|
|||
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
(28,470
|
)
|
|
(1,392
|
)
|
|||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
|
(92,566
|
)
|
|
(130,468
|
)
|
|
(278,542
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Issuance of common stock
|
19
|
123,059
|
|
|
—
|
|
|
—
|
|
|||
Issuance of notes and bank borrowings, net of issuance costs
|
12
|
60,000
|
|
|
95,000
|
|
|
342,620
|
|
|||
Payments on debt, finance leases, and associated costs
|
12
|
(221,854
|
)
|
|
(95,059
|
)
|
|
(203,045
|
)
|
|||
Silvertip contingent consideration
|
21
|
(18,697
|
)
|
|
—
|
|
|
—
|
|
|||
Other
|
|
(3,404
|
)
|
|
(5,160
|
)
|
|
(3,746
|
)
|
|||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS
|
|
(60,896
|
)
|
|
(5,219
|
)
|
|
135,829
|
|
|||
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
(22
|
)
|
|
(84
|
)
|
|||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
(60,896
|
)
|
|
(5,241
|
)
|
|
135,745
|
|
|||
Effect of exchange rate changes on cash and cash equivalents
|
|
531
|
|
|
28
|
|
|
203
|
|
|||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
(61,051
|
)
|
|
(118,263
|
)
|
|
65,862
|
|
|||
Less net cash used in discontinued operations(1)
|
|
—
|
|
|
(32,930
|
)
|
|
(10,939
|
)
|
|||
|
|
(61,051
|
)
|
|
(85,333
|
)
|
|
76,801
|
|
|||
Cash, cash equivalents and restricted cash at beginning of period
|
|
118,069
|
|
|
203,402
|
|
|
126,601
|
|
|||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
57,018
|
|
|
$
|
118,069
|
|
|
$
|
203,402
|
|
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, 2016
|
180,933
|
|
|
$
|
1,809
|
|
|
$
|
3,314,590
|
|
|
$
|
(2,545,424
|
)
|
|
$
|
(2,488
|
)
|
|
$
|
768,487
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,319
|
)
|
|
—
|
|
|
(1,319
|
)
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,007
|
|
|
5,007
|
|
|||||
Common stock issued for acquisitions
|
4,192
|
|
|
42
|
|
|
35,965
|
|
|
—
|
|
|
—
|
|
|
36,007
|
|
|||||
Common stock issued under stock-based compensation plans, net
|
513
|
|
|
5
|
|
|
6,790
|
|
|
—
|
|
|
—
|
|
|
6,795
|
|
|||||
Balances at December 31, 2017
|
185,638
|
|
|
1,856
|
|
|
3,357,345
|
|
|
(2,546,743
|
)
|
|
2,519
|
|
|
814,977
|
|
|||||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(48,405
|
)
|
|
—
|
|
|
(48,405
|
)
|
|||||
Reclassification of unrealized gain (loss) on equity securities for ASU 2016-01
|
—
|
|
|
—
|
|
|
—
|
|
|
2,604
|
|
|
(2,604
|
)
|
|
—
|
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26
|
|
|
26
|
|
|||||
Common stock issued for acquisitions
|
16,390
|
|
|
163
|
|
|
82,505
|
|
|
—
|
|
|
—
|
|
|
82,668
|
|
|||||
Common stock issued under stock-based compensation plans, net
|
1,282
|
|
|
14
|
|
|
3,232
|
|
|
—
|
|
|
—
|
|
|
3,246
|
|
|||||
Balances at December 31, 2018
|
203,310
|
|
|
$
|
2,033
|
|
|
$
|
3,443,082
|
|
|
$
|
(2,592,544
|
)
|
|
(59
|
)
|
|
852,512
|
|
||
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(341,203
|
)
|
|
—
|
|
|
(341,203
|
)
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
(77
|
)
|
|||||
Common stock issued for the extinguishment of Senior Notes
|
4,453
|
|
|
45
|
|
|
21,246
|
|
|
—
|
|
|
—
|
|
|
21,291
|
|
|||||
Common stock issued under "at the market" stock offering
|
30,850
|
|
|
309
|
|
|
122,523
|
|
|
—
|
|
|
—
|
|
|
122,832
|
|
|||||
Common stock issued for Silvertip contingent consideration payment
|
953
|
|
|
8
|
|
|
5,965
|
|
|
—
|
|
|
—
|
|
|
5,973
|
|
|||||
Common stock issued/canceled under long-term incentive plans and director fees and options, net
|
1,963
|
|
|
20
|
|
|
5,656
|
|
|
—
|
|
|
—
|
|
|
5,676
|
|
|||||
Balances at December 31, 2019
|
241,529
|
|
|
$
|
2,415
|
|
|
$
|
3,598,472
|
|
|
$
|
(2,933,747
|
)
|
|
$
|
(136
|
)
|
|
$
|
667,004
|
|
Year ended December 31, 2019
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip (3)
|
|
Other
|
|
Total
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gold sales
|
$
|
141,669
|
|
|
$
|
50,225
|
|
|
$
|
181,111
|
|
|
$
|
120,342
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
493,347
|
|
Silver sales
|
111,032
|
|
|
61,799
|
|
|
—
|
|
|
1,072
|
|
|
17,575
|
|
|
—
|
|
|
191,478
|
|
|||||||
Zinc sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,806
|
|
|
—
|
|
|
12,806
|
|
|||||||
Lead sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,871
|
|
|
—
|
|
|
13,871
|
|
|||||||
Metal sales
|
252,701
|
|
|
112,024
|
|
|
181,111
|
|
|
121,414
|
|
|
44,252
|
|
|
—
|
|
|
711,502
|
|
|||||||
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Costs applicable to sales(1)
|
141,927
|
|
|
100,205
|
|
|
119,602
|
|
|
80,689
|
|
|
108,758
|
|
|
—
|
|
|
551,181
|
|
|||||||
Amortization
|
59,379
|
|
|
18,041
|
|
|
50,592
|
|
|
12,280
|
|
|
36,738
|
|
|
1,846
|
|
|
178,876
|
|
|||||||
Exploration
|
5,658
|
|
|
657
|
|
|
5,588
|
|
|
272
|
|
|
2,469
|
|
|
7,883
|
|
|
22,527
|
|
|||||||
Write-downs
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
250,814
|
|
|
—
|
|
|
250,814
|
|
|||||||
Other operating expenses
|
4,591
|
|
|
4,572
|
|
|
1,248
|
|
|
2,832
|
|
|
1,216
|
|
|
38,455
|
|
|
52,914
|
|
|||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,281
|
)
|
|
(1,281
|
)
|
|||||||
Fair value adjustments, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,030
|
|
|
16,030
|
|
|||||||
Interest expense, net
|
(444
|
)
|
|
(1,015
|
)
|
|
(1,333
|
)
|
|
(100
|
)
|
|
(1,137
|
)
|
|
(20,742
|
)
|
|
(24,771
|
)
|
|||||||
Other, net
|
(4,798
|
)
|
|
(378
|
)
|
|
(704
|
)
|
|
89
|
|
|
(557
|
)
|
|
3,155
|
|
|
(3,193
|
)
|
|||||||
Income and mining tax (expense) benefit
|
(14,257
|
)
|
|
(709
|
)
|
|
—
|
|
|
(3,041
|
)
|
|
32,084
|
|
|
(2,948
|
)
|
|
11,129
|
|
|||||||
Income (loss) from continuing operations
|
$
|
21,647
|
|
|
$
|
(13,553
|
)
|
|
$
|
2,044
|
|
|
$
|
22,289
|
|
|
$
|
(325,353
|
)
|
|
$
|
(53,970
|
)
|
|
$
|
(346,896
|
)
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,693
|
|
|
$
|
5,693
|
|
Segment assets(2)
|
$
|
319,292
|
|
|
$
|
284,878
|
|
|
$
|
194,076
|
|
|
$
|
84,765
|
|
|
$
|
164,125
|
|
|
$
|
168,647
|
|
|
$
|
1,215,783
|
|
Capital expenditures
|
$
|
32,658
|
|
|
$
|
22,592
|
|
|
$
|
23,513
|
|
|
$
|
2,220
|
|
|
$
|
17,504
|
|
|
$
|
1,285
|
|
|
$
|
99,772
|
|
Year ended December 31, 2018
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Other
|
|
Total
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gold sales
|
$
|
131,758
|
|
|
$
|
66,556
|
|
|
$
|
132,924
|
|
|
$
|
95,770
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
427,008
|
|
|
Silver sales
|
113,998
|
|
|
75,252
|
|
|
—
|
|
|
746
|
|
|
3,157
|
|
|
—
|
|
|
193,153
|
|
|||||||
Zinc sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,612
|
|
|
—
|
|
|
3,612
|
|
|||||||
Lead sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,131
|
|
|
—
|
|
|
2,131
|
|
|||||||
Metal sales
|
245,756
|
|
|
141,808
|
|
|
132,924
|
|
|
96,516
|
|
|
8,900
|
|
|
—
|
|
|
625,904
|
|
|||||||
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs applicable to sales(1)
|
120,088
|
|
|
105,677
|
|
|
112,364
|
|
|
67,201
|
|
|
35,620
|
|
|
—
|
|
|
440,950
|
|
|||||||
Amortization
|
60,744
|
|
|
20,909
|
|
|
29,508
|
|
|
11,072
|
|
|
5,235
|
|
|
1,005
|
|
|
128,473
|
|
|||||||
Exploration
|
10,516
|
|
|
332
|
|
|
5,871
|
|
|
104
|
|
|
2,748
|
|
|
5,826
|
|
|
25,397
|
|
|||||||
Other operating expenses
|
3,043
|
|
|
7,071
|
|
|
1,721
|
|
|
2,686
|
|
|
303
|
|
|
36,564
|
|
|
51,388
|
|
|||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Fair value adjustments, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,638
|
|
|
3,638
|
|
|||||||
Interest expense, net
|
(2,137
|
)
|
|
(466
|
)
|
|
(973
|
)
|
|
(40
|
)
|
|
(766
|
)
|
|
(19,982
|
)
|
|
(24,364
|
)
|
|||||||
Other, net
|
(8,308
|
)
|
|
(1,211
|
)
|
|
2,795
|
|
|
(834
|
)
|
|
(370
|
)
|
|
(16,777
|
)
|
|
(24,705
|
)
|
|||||||
Income and mining tax (expense) benefit
|
(15,724
|
)
|
|
(874
|
)
|
|
—
|
|
|
(1,063
|
)
|
|
16,057
|
|
|
18,384
|
|
|
16,780
|
|
|||||||
Income (loss) from continuing operations
|
$
|
25,196
|
|
|
$
|
5,268
|
|
|
$
|
(14,718
|
)
|
|
$
|
13,516
|
|
|
$
|
(20,085
|
)
|
|
$
|
(58,132
|
)
|
|
$
|
(48,955
|
)
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
550
|
|
|
$
|
550
|
|
|
Segment assets(2)
|
$
|
363,024
|
|
|
$
|
269,903
|
|
|
$
|
224,460
|
|
|
$
|
102,246
|
|
|
415,998
|
|
|
$
|
175,040
|
|
|
$
|
1,550,671
|
|
|
Capital expenditures
|
$
|
29,425
|
|
|
$
|
9,919
|
|
|
$
|
44,738
|
|
|
$
|
3,382
|
|
|
52,932
|
|
|
$
|
391
|
|
|
$
|
140,787
|
|
Year ended December 31, 2017
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Other
|
|
Total
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gold sales
|
$
|
146,187
|
|
|
$
|
68,964
|
|
|
$
|
154,469
|
|
|
$
|
124,629
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
494,249
|
|
|
Silver sales
|
128,622
|
|
|
83,716
|
|
|
—
|
|
|
1,272
|
|
|
—
|
|
|
1,739
|
|
|
215,349
|
|
|||||||
Metal sales
|
274,809
|
|
|
152,680
|
|
|
154,469
|
|
|
125,901
|
|
|
—
|
|
|
1,739
|
|
|
709,598
|
|
|||||||
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Costs applicable to sales(1)
|
146,176
|
|
|
107,921
|
|
|
116,096
|
|
|
69,322
|
|
|
—
|
|
|
745
|
|
|
440,260
|
|
|||||||
Amortization
|
73,744
|
|
|
22,306
|
|
|
36,022
|
|
|
13,012
|
|
|
—
|
|
|
1,465
|
|
|
146,549
|
|
|||||||
Exploration
|
11,924
|
|
|
1,352
|
|
|
8,604
|
|
|
320
|
|
|
—
|
|
|
8,111
|
|
|
30,311
|
|
|||||||
Other operating expenses
|
1,263
|
|
|
3,394
|
|
|
1,412
|
|
|
2,468
|
|
|
153
|
|
|
43,862
|
|
|
52,552
|
|
|||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,342
|
)
|
|
(9,342
|
)
|
|||||||
Fair value adjustments, net
|
—
|
|
|
(864
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(864
|
)
|
|||||||
Interest expense, net
|
(487
|
)
|
|
(496
|
)
|
|
(413
|
)
|
|
(66
|
)
|
|
(2,212
|
)
|
|
(12,766
|
)
|
|
(16,440
|
)
|
|||||||
Other, net
|
(851
|
)
|
|
2,193
|
|
|
(922
|
)
|
|
172
|
|
|
1,142
|
|
|
24,909
|
|
|
26,643
|
|
|||||||
Income and mining tax (expense) benefit
|
(24,330
|
)
|
|
(1,028
|
)
|
|
—
|
|
|
(3,936
|
)
|
|
(932
|
)
|
|
1,228
|
|
|
(28,998
|
)
|
|||||||
Income (loss) from continuing operations
|
$
|
16,034
|
|
|
$
|
17,512
|
|
|
$
|
(9,000
|
)
|
|
$
|
36,949
|
|
|
$
|
(2,155
|
)
|
|
$
|
(48,415
|
)
|
|
$
|
10,925
|
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
(12,244
|
)
|
|
$
|
(12,244
|
)
|
|
Segment assets(2)
|
$
|
377,621
|
|
|
$
|
239,223
|
|
|
$
|
212,588
|
|
|
$
|
104,010
|
|
|
339,369
|
|
|
$
|
71,742
|
|
|
$
|
1,344,553
|
|
|
Capital expenditures
|
$
|
29,902
|
|
|
$
|
40,874
|
|
|
$
|
36,248
|
|
|
$
|
8,844
|
|
|
17,684
|
|
|
$
|
3,182
|
|
|
$
|
136,734
|
|
Assets
|
December 31, 2019
|
|
December 31, 2018
|
||||
Total assets for reportable segments
|
$
|
1,215,783
|
|
|
$
|
1,550,671
|
|
Cash and cash equivalents
|
55,645
|
|
|
115,081
|
|
||
Other assets
|
107,208
|
|
|
46,748
|
|
||
Total consolidated assets
|
$
|
1,378,636
|
|
|
$
|
1,712,500
|
|
Long-Lived Assets
|
December 31, 2019
|
|
December 31, 2018
|
||||
United States
|
$
|
494,286
|
|
|
$
|
515,649
|
|
Mexico
|
312,168
|
|
|
342,007
|
|
||
Canada
|
146,804
|
|
|
404,185
|
|
||
Other
|
7,486
|
|
|
8,177
|
|
||
Total
|
$
|
960,744
|
|
|
$
|
1,270,018
|
|
|
Year ended December 31,
|
|
||||||||||
Customer
|
2019
|
|
2018
|
|
2017
|
Segments reporting revenue
|
||||||
Asahi
|
$
|
341.0
|
|
|
$
|
213.0
|
|
|
$
|
124.1
|
|
Palmarejo, Wharf, Rochester
|
Ocean Partners
|
149.7
|
|
|
74.8
|
|
|
—
|
|
Silvertip, Kensington
|
|||
Techemet Metal Trading
|
9.4
|
|
|
83.3
|
|
|
104.8
|
|
Rochester, Wharf
|
|||
RMC
|
—
|
|
|
71.7
|
|
|
132.4
|
|
Palmarejo, Rochester
|
|||
China National Gold
|
—
|
|
|
54.1
|
|
|
137.5
|
|
Kensington
|
In thousands
|
December 31, 2019
|
|
December 31, 2018
|
||||
Current receivables:
|
|
|
|
||||
Trade receivables
|
$
|
6,028
|
|
|
$
|
5,147
|
|
Value added tax (“VAT”) receivable
|
10,729
|
|
|
18,609
|
|
||
Income tax receivable
|
105
|
|
|
6
|
|
||
Manquiri Notes Receivable
|
—
|
|
|
5,487
|
|
||
Other
|
1,804
|
|
|
495
|
|
||
|
$
|
18,666
|
|
|
$
|
29,744
|
|
Non-current receivables:
|
|
|
|
||||
VAT receivable(1)
|
$
|
28,009
|
|
|
$
|
26,817
|
|
RMC Receivable(2)
|
700
|
|
|
4,334
|
|
||
|
28,709
|
|
|
31,151
|
|
||
Total receivables
|
$
|
47,375
|
|
|
$
|
60,895
|
|
In thousands
|
December 31, 2019
|
|
December 31, 2018
|
||||
Inventory:
|
|
|
|
||||
Concentrate
|
6,557
|
|
|
$
|
10,772
|
|
|
Precious metals
|
14,040
|
|
|
20,761
|
|
||
Supplies
|
35,289
|
|
|
34,746
|
|
||
|
55,886
|
|
|
66,279
|
|
||
Ore on leach pads:
|
|
|
|
||||
Current
|
66,192
|
|
|
75,122
|
|
||
Non-current
|
71,539
|
|
|
66,964
|
|
||
|
137,731
|
|
|
142,086
|
|
||
Total inventory and ore on leach pads
|
$
|
193,617
|
|
|
$
|
208,365
|
|
|
At December 31, 2019
|
||||||||||||||
In thousands
|
Cost
|
|
Gross
Unrealized
Losses
|
|
Gross
Unrealized
Gains
|
|
Estimated
Fair Value
|
||||||||
Equity Securities
|
|
|
|
|
|
|
|
||||||||
Metalla Royalty & Streaming Ltd.
|
$
|
10,463
|
|
|
$
|
—
|
|
|
$
|
17,725
|
|
|
$
|
28,188
|
|
Integra Resources Corp.
|
5,000
|
|
|
—
|
|
|
355
|
|
|
5,355
|
|
||||
Rockhaven Resources Ltd.
|
2,064
|
|
|
(376
|
)
|
|
—
|
|
|
1,688
|
|
||||
Other
|
1,304
|
|
|
(888
|
)
|
|
—
|
|
|
415
|
|
||||
Equity securities
|
$
|
18,831
|
|
|
$
|
(1,264
|
)
|
|
$
|
18,080
|
|
|
$
|
35,646
|
|
|
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
|
|
|
Year ended December 31,
|
||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
||||||
Net gain (loss)
|
$
|
16,208
|
|
|
$
|
2,945
|
|
|
$
|
1,356
|
|
Less: Realized (gain) loss
|
(860
|
)
|
|
(7,964
|
)
|
|
(1,356
|
)
|
|||
Unrealized gain (loss)
|
$
|
15,348
|
|
|
$
|
(5,019
|
)
|
|
$
|
—
|
|
In thousands
|
December 31, 2019
|
|
December 31, 2018
|
||||
Land
|
$
|
10,598
|
|
|
$
|
10,082
|
|
Facilities and equipment
|
650,769
|
|
|
611,399
|
|
||
Assets under capital leases
|
$
|
103,903
|
|
|
107,445
|
|
|
|
765,270
|
|
|
728,926
|
|
||
Accumulated amortization(1)
|
$
|
(537,046
|
)
|
|
(486,371
|
)
|
|
|
228,224
|
|
|
242,555
|
|
||
Construction in progress
|
$
|
20,565
|
|
|
55,896
|
|
|
Property, plant and equipment, net
|
248,789
|
|
|
$
|
298,451
|
|
December 31, 2019
|
Palmarejo
|
|
Rochester
|
|
Silvertip
|
|
Kensington
|
|
Wharf
|
|
Sterling
|
|
La Preciosa
|
|
Other
|
|
Total
|
||||||||||||||||||
Mine development
|
$
|
260,838
|
|
|
$
|
220,127
|
|
|
$
|
50,146
|
|
|
$
|
345,026
|
|
|
$
|
34,165
|
|
|
$
|
3,651
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
913,953
|
|
Accumulated amortization
|
(179,894
|
)
|
|
(155,079
|
)
|
|
(9,623
|
)
|
|
(230,869
|
)
|
|
(20,071
|
)
|
|
(678
|
)
|
|
—
|
|
|
—
|
|
|
(596,214
|
)
|
|||||||||
|
80,944
|
|
|
65,048
|
|
|
40,523
|
|
|
114,157
|
|
|
14,094
|
|
|
2,973
|
|
|
—
|
|
|
—
|
|
|
317,739
|
|
|||||||||
Mineral interests
|
629,303
|
|
|
18,541
|
|
|
105,736
|
|
|
|
|
|
45,837
|
|
|
95,499
|
|
|
49,085
|
|
|
5,171
|
|
|
949,172
|
|
|||||||||
Accumulated amortization
|
(501,039
|
)
|
|
|
|
|
(24,147
|
)
|
|
|
|
|
(29,051
|
)
|
|
—
|
|
|
—
|
|
|
(719
|
)
|
|
(554,956
|
)
|
|||||||||
|
128,264
|
|
|
18,541
|
|
|
81,589
|
|
|
—
|
|
|
16,786
|
|
|
95,499
|
|
|
49,085
|
|
|
4,452
|
|
|
394,216
|
|
|||||||||
Mining properties, net
|
$
|
209,208
|
|
|
$
|
83,589
|
|
|
$
|
122,112
|
|
|
$
|
114,157
|
|
|
$
|
30,880
|
|
|
$
|
98,472
|
|
|
$
|
49,085
|
|
|
$
|
4,452
|
|
|
$
|
711,955
|
|
December 31, 2018
|
Palmarejo
|
|
Rochester
|
|
Silvertip
|
|
Kensington
|
|
Wharf
|
|
Sterling
|
|
La Preciosa
|
|
Other
|
|
Total
|
||||||||||||||||||
Mine development
|
$
|
239,780
|
|
|
$
|
200,126
|
|
|
$
|
101,933
|
|
|
$
|
324,414
|
|
|
$
|
41,761
|
|
|
$
|
4,070
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
912,084
|
|
Accumulated amortization
|
(163,414
|
)
|
|
(151,141
|
)
|
|
(1,411
|
)
|
|
(198,456
|
)
|
|
(18,759
|
)
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
(533,195
|
)
|
|||||||||
|
76,366
|
|
|
48,985
|
|
|
100,522
|
|
|
125,958
|
|
|
23,002
|
|
|
4,056
|
|
|
—
|
|
|
—
|
|
|
378,889
|
|
|||||||||
Mineral interests
|
629,303
|
|
|
18,521
|
|
|
252,899
|
|
|
—
|
|
|
45,837
|
|
|
95,499
|
|
|
49,085
|
|
|
5,171
|
|
|
1,096,315
|
|
|||||||||
Accumulated amortization
|
(472,448
|
)
|
|
—
|
|
|
(4,105
|
)
|
|
—
|
|
|
(26,667
|
)
|
|
—
|
|
|
—
|
|
|
(417
|
)
|
|
(503,637
|
)
|
|||||||||
|
156,855
|
|
|
18,521
|
|
|
248,794
|
|
|
—
|
|
|
19,170
|
|
|
95,499
|
|
|
49,085
|
|
|
4,754
|
|
|
592,678
|
|
|||||||||
Mining properties, net
|
$
|
233,221
|
|
|
$
|
67,506
|
|
|
$
|
349,316
|
|
|
$
|
125,958
|
|
|
$
|
42,172
|
|
|
$
|
99,555
|
|
|
$
|
49,085
|
|
|
$
|
4,754
|
|
|
$
|
971,567
|
|
Common shares issued (4,268,703 at $4.40)
|
$
|
18,782
|
|
Transaction advisory fees and other acquisition costs
|
246
|
|
|
Total purchase price
|
$
|
19,028
|
|
|
|
|
|
Total assets acquired
|
$
|
19,028
|
|
Common shares issued (12,122,683 at $5.27)
|
$
|
63,887
|
|
Fair value of existing investment in Northern Empire
|
7,257
|
|
|
Transaction advisory fees and other acquisition costs
|
2,449
|
|
|
Total consideration
|
73,593
|
|
|
|
|
||
Total assets acquired
|
111,527
|
|
|
Total liabilities assumed
|
37,934
|
|
|
Net assets acquired
|
$
|
73,593
|
|
Common shares issued (4,191,679 at $8.59)
|
$
|
36,007
|
|
Cash
|
153,194
|
|
|
Contingent consideration
|
47,705
|
|
|
Total purchase price(1)
|
$
|
236,906
|
|
|
|
||
Total assets acquired
|
328,450
|
|
|
Total liabilities assumed
|
91,544
|
|
|
Net assets acquired
|
$
|
236,906
|
|
|
Year Ended
|
||
In thousands
|
December 31, 2019
|
||
Lease Cost
|
|
||
Operating lease cost
|
$
|
11,585
|
|
|
|
||
Short-term operating lease cost
|
$
|
12,975
|
|
|
|
||
Finance Lease Cost:
|
|
||
Amortization of leased assets
|
$
|
21,293
|
|
Interest on lease liabilities
|
4,150
|
|
|
Total finance lease cost
|
$
|
25,443
|
|
|
Year Ended
|
||
In thousands
|
December 31, 2019
|
||
Other Information
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
24,560
|
|
Operating cash flows from finance leases
|
$
|
4,150
|
|
Financing cash flows from finance leases
|
$
|
25,975
|
|
In thousands
|
December 31, 2019
|
||
Operating Leases
|
|
||
Other assets, non-current
|
$
|
49,169
|
|
|
|
||
Accrued liabilities and other
|
$
|
13,104
|
|
Other long-term liabilities
|
40,634
|
|
|
Total operating lease liabilities
|
$
|
53,738
|
|
|
|
||
Finance Leases
|
|
||
Property and equipment, gross
|
$
|
103,903
|
|
Accumulated depreciation
|
(42,209
|
)
|
|
Property and equipment, net
|
$
|
61,694
|
|
|
|
||
Debt, current
|
$
|
22,746
|
|
Debt, non-current
|
45,866
|
|
|
Total finance lease liabilities
|
$
|
68,612
|
|
|
|
||
Weighted Average Remaining Lease Term
|
|
||
Weighted-average remaining lease term - finance leases
|
1.73
|
|
|
Weighted-average remaining lease term - operating leases
|
4.70
|
|
|
|
|
||
Weighted Average Discount Rate
|
|
||
Weighted-average discount rate - finance leases
|
5.40
|
%
|
|
Weighted-average discount rate - operating leases
|
5.20
|
%
|
At December 31, (In thousands)
|
|
|
||||
|
Operating leases
|
Finance leases
|
||||
2020
|
$
|
13,319
|
|
$
|
25,661
|
|
2021
|
12,920
|
|
24,455
|
|
||
2022
|
12,887
|
|
17,716
|
|
||
2023
|
12,450
|
|
6,424
|
|
||
2024
|
8,605
|
|
1,488
|
|
||
Thereafter
|
—
|
|
135
|
|
||
Total
|
$
|
60,181
|
|
$
|
75,879
|
|
Less: imputed interest
|
(6,443
|
)
|
(7,267
|
)
|
||
Net lease obligation
|
$
|
53,738
|
|
$
|
68,612
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
In thousands
|
Current
|
|
Non-Current
|
|
Current
|
|
Non-Current
|
||||||||
2024 Senior Notes, net(1)
|
$
|
—
|
|
|
$
|
226,885
|
|
|
$
|
—
|
|
|
$
|
245,854
|
|
Revolving Credit Facility(2)
|
—
|
|
|
—
|
|
|
—
|
|
|
135,000
|
|
||||
Finance lease obligations
|
22,746
|
|
|
45,866
|
|
|
24,937
|
|
|
53,035
|
|
||||
|
$
|
22,746
|
|
|
$
|
272,751
|
|
|
$
|
24,937
|
|
|
$
|
433,889
|
|
|
Year ended December 31,
|
||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
||||||
2024 Senior Notes
|
$
|
14,586
|
|
|
$
|
14,688
|
|
|
$
|
8,608
|
|
2021 Senior Notes
|
—
|
|
|
—
|
|
|
6,221
|
|
|||
Revolving Credit Facility
|
5,358
|
|
|
5,854
|
|
|
885
|
|
|||
Finance lease obligations
|
4,150
|
|
|
2,270
|
|
|
1,621
|
|
|||
Amortization of debt issuance costs
|
1,491
|
|
|
1,302
|
|
|
809
|
|
|||
Accretion of Silvertip contingent consideration
|
396
|
|
|
1,311
|
|
|
260
|
|
|||
Other debt obligations
|
580
|
|
|
176
|
|
|
(29
|
)
|
|||
Capitalized interest
|
(1,790
|
)
|
|
(1,237
|
)
|
|
(1,935
|
)
|
|||
Total interest expense, net of capitalized interest
|
$
|
24,771
|
|
|
$
|
24,364
|
|
|
$
|
16,440
|
|
|
Year ended December 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
Asset retirement obligation - Beginning
|
$
|
133,508
|
|
|
$
|
118,799
|
|
Accretion
|
11,968
|
|
|
11,037
|
|
||
Additions and changes in estimates
|
(7,538
|
)
|
|
6,880
|
|
||
Settlements
|
(3,540
|
)
|
|
(3,208
|
)
|
||
Asset retirement obligation - Ending
|
$
|
134,398
|
|
|
$
|
133,508
|
|
|
Year ended December 31,
|
||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
||||||
United States
|
$
|
(16,702
|
)
|
|
$
|
(50,522
|
)
|
|
$
|
10,099
|
|
Foreign
|
(341,323
|
)
|
|
(15,213
|
)
|
|
29,824
|
|
|||
Total
|
$
|
(358,025
|
)
|
|
$
|
(65,735
|
)
|
|
$
|
39,923
|
|
|
Year ended December 31,
|
||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
|
|
|
|||
United States
|
$
|
(334
|
)
|
|
$
|
1,188
|
|
|
$
|
1,428
|
|
United States — State mining taxes
|
(4,001
|
)
|
|
(3,208
|
)
|
|
(6,016
|
)
|
|||
United States — Foreign withholding tax
|
(1,598
|
)
|
|
(5,617
|
)
|
|
(8,466
|
)
|
|||
Canada
|
119
|
|
|
378
|
|
|
876
|
|
|||
Mexico
|
(19,619
|
)
|
|
(26,021
|
)
|
|
(30,763
|
)
|
|||
Other
|
(3
|
)
|
|
67
|
|
|
55
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
United States
|
236
|
|
|
23,322
|
|
|
6,367
|
|
|||
United States — State mining taxes
|
251
|
|
|
1,134
|
|
|
1,052
|
|
|||
Canada
|
32,084
|
|
|
16,057
|
|
|
104
|
|
|||
Mexico
|
3,994
|
|
|
9,929
|
|
|
4,805
|
|
|||
Other
|
—
|
|
|
(449
|
)
|
|
1,560
|
|
|||
Income tax (expense) benefit
|
$
|
11,129
|
|
|
$
|
16,780
|
|
|
$
|
(28,998
|
)
|
|
Year ended December 31,
|
||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
||||||
Income and mining tax (expense) benefit at statutory rate
|
$
|
75,185
|
|
|
$
|
14,052
|
|
|
$
|
(14,037
|
)
|
State tax provision from continuing operations
|
1,243
|
|
|
2,284
|
|
|
26
|
|
|||
Change in valuation allowance
|
(77,220
|
)
|
|
2,471
|
|
|
86,712
|
|
|||
Effect of tax legislation
|
—
|
|
|
—
|
|
|
(88,174
|
)
|
|||
Percentage depletion
|
820
|
|
|
89
|
|
|
703
|
|
|||
Uncertain tax positions
|
2,358
|
|
|
1,830
|
|
|
2,596
|
|
|||
U.S. and foreign permanent differences
|
2,272
|
|
|
3,314
|
|
|
2,348
|
|
|||
Foreign exchange rates
|
(7,066
|
)
|
|
(3,973
|
)
|
|
(14,180
|
)
|
|||
Foreign inflation and indexing
|
(2,933
|
)
|
|
(2,374
|
)
|
|
(2,346
|
)
|
|||
Foreign tax rate differences
|
19,729
|
|
|
(24
|
)
|
|
2,929
|
|
|||
Mining, foreign withholding, and other taxes
|
(2,746
|
)
|
|
(3,857
|
)
|
|
(11,274
|
)
|
|||
Other, net
|
(513
|
)
|
|
2,968
|
|
|
5,699
|
|
|||
Income and mining tax (expense) benefit
|
$
|
11,129
|
|
|
$
|
16,780
|
|
|
$
|
(28,998
|
)
|
|
Year ended December 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
Deferred tax liabilities:
|
|
|
|
|
|
||
Mineral properties
|
$
|
25,691
|
|
|
$
|
118,852
|
|
Inventory
|
847
|
|
|
4,513
|
|
||
Foreign subsidiaries - unremitted earnings
|
50
|
|
|
7
|
|
||
|
$
|
26,588
|
|
|
$
|
123,372
|
|
Deferred tax assets:
|
|
|
|
|
|||
Net operating loss carryforwards
|
$
|
219,192
|
|
|
$
|
189,840
|
|
Property, plant, and equipment
|
20,212
|
|
|
7,779
|
|
||
Mining Royalty Tax
|
6,764
|
|
|
8,980
|
|
||
Capital loss carryforwards
|
21,956
|
|
|
23,003
|
|
||
Asset retirement obligation
|
34,134
|
|
|
27,980
|
|
||
Unrealized foreign currency loss and other
|
9,133
|
|
|
8,387
|
|
||
Royalty and other long-term debt
|
6,235
|
|
|
3,821
|
|
||
Accrued expenses
|
8,899
|
|
|
14,247
|
|
||
Tax credit carryforwards
|
29,881
|
|
|
33,897
|
|
||
|
356,406
|
|
|
317,934
|
|
||
Valuation allowance
|
(371,277
|
)
|
|
(272,839
|
)
|
||
|
(14,871
|
)
|
|
45,095
|
|
||
Net deferred tax liabilities
|
$
|
41,459
|
|
|
$
|
78,277
|
|
|
Year ended December 31,
|
||||||
In thousands
|
2019
|
|
2018
|
||||
U.S.
|
$
|
213,783
|
|
|
$
|
223,444
|
|
Canada
|
118,738
|
|
|
7,661
|
|
||
Mexico
|
15,884
|
|
|
17,606
|
|
||
New Zealand
|
21,863
|
|
|
22,482
|
|
||
Other
|
1,009
|
|
|
1,646
|
|
||
|
$
|
371,277
|
|
|
$
|
272,839
|
|
In thousands
|
U.S.
|
|
Canada
|
|
Mexico
|
|
New Zealand
|
|
Other
|
|
Total
|
||||||||||||
Regular net operating losses
|
$
|
421,561
|
|
|
$
|
236,849
|
|
|
$
|
52,947
|
|
|
$
|
80,838
|
|
|
$
|
2,344
|
|
|
$
|
794,539
|
|
Expiration years
|
2020-2038
|
|
2029-2039
|
|
2020-2030
|
|
Indefinite
|
|
2020-2022
|
|
|
||||||||||||
Capital losses
|
82,147
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
82,147
|
|
||||||
Alternative minimum tax credits
|
430
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
430
|
|
||||||
Foreign tax credits
|
24,939
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,939
|
|
Unrecognized tax benefits at December 31, 2017
|
$
|
5,324
|
|
Gross increase to current period tax positions
|
—
|
|
|
Gross increase to prior period tax positions
|
37
|
|
|
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations
|
(1,585
|
)
|
|
Unrecognized tax benefits at December 31, 2018
|
$
|
3,776
|
|
Gross increase to current period tax positions
|
—
|
|
|
Gross increase to prior period tax positions
|
137
|
|
|
Reductions in unrecognized tax benefits resulting from a lapse of the applicable statute of limitations
|
(1,207
|
)
|
|
Unrecognized tax benefits at December 31, 2019
|
$
|
2,706
|
|
|
Restricted Stock
|
|||||
|
Number of
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|||
Outstanding at December 31, 2016
|
2,433,915
|
|
|
4.48
|
|
|
Granted
|
799,165
|
|
|
8.78
|
|
|
Vested
|
(1,023,708
|
)
|
|
5.14
|
|
|
Canceled/Forfeited
|
(53,527
|
)
|
|
5.90
|
|
|
Outstanding at December 31, 2017
|
2,155,845
|
|
|
5.72
|
|
|
Granted
|
1,000,690
|
|
|
7.63
|
|
|
Vested
|
(1,277,076
|
)
|
|
5.30
|
|
|
Canceled/Forfeited
|
(337,811
|
)
|
|
6.51
|
|
|
Outstanding at December 31, 2018
|
1,541,648
|
|
|
7.14
|
|
|
Granted
|
1,586,590
|
|
|
4.90
|
|
|
Vested
|
(797,025
|
)
|
|
6.36
|
|
|
Canceled/Forfeited
|
(146,538
|
)
|
|
5.70
|
|
|
Outstanding at December 31, 2019
|
2,184,675
|
|
|
$
|
5.89
|
|
|
Performance Shares
|
||||
|
Number of
Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
||
Outstanding at December 31, 2016
|
2,372,632
|
|
|
4.53
|
|
Granted
|
316,213
|
|
|
11.58
|
|
Vested
|
(66,696
|
)
|
|
14.18
|
|
Canceled/Forfeited
|
(253,868
|
)
|
|
11.56
|
|
Outstanding at December 31, 2017
|
2,368,281
|
|
|
4.44
|
|
Granted (1)
|
869,421
|
|
|
7.41
|
|
Vested
|
(1,086,058
|
)
|
|
6.83
|
|
Canceled/Forfeited
|
(613,329
|
)
|
|
5.41
|
|
Outstanding at December 31, 2018
|
1,538,315
|
|
|
4.05
|
|
Granted (2)
|
946,000
|
|
|
4.71
|
|
Vested
|
(969,903
|
)
|
|
1.77
|
|
Canceled/Forfeited (2)
|
(300,267
|
)
|
|
1.84
|
|
Outstanding at December 31, 2019
|
1,214,145
|
|
|
6.93
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Weighted average fair value of stock options granted
|
$
|
—
|
|
|
$
|
4.09
|
|
|
$
|
3.91
|
|
Volatility
|
—
|
|
|
66.86
|
%
|
|
67.07
|
%
|
|||
Expected life in years
|
0
|
|
|
4.00
|
|
|
4.00
|
|
|||
Risk-free interest rate
|
—
|
|
|
2.07
|
%
|
|
1.69
|
%
|
|||
Dividend yield
|
—
|
|
|
—
|
|
|
—
|
|
|
Stock Options
|
|
SARs
|
||||||||
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Shares
|
|
Weighted
Average Exercise Price |
||||
Outstanding at December 31, 2016
|
656,611
|
|
|
10.76
|
|
|
42,152
|
|
|
14.14
|
|
Granted
|
14,820
|
|
|
7.60
|
|
|
—
|
|
|
—
|
|
Exercised
|
(26,966
|
)
|
|
3.28
|
|
|
—
|
|
|
—
|
|
Canceled/forfeited
|
(27,019
|
)
|
|
21.88
|
|
|
—
|
|
|
—
|
|
Outstanding at December 31, 2017
|
617,446
|
|
|
10.53
|
|
|
42,152
|
|
|
14.14
|
|
Granted
|
14,310
|
|
|
7.91
|
|
|
—
|
|
|
—
|
|
Exercised
|
(159,069
|
)
|
|
3.35
|
|
|
—
|
|
|
—
|
|
Canceled/forfeited
|
(153,601
|
)
|
|
11.48
|
|
|
—
|
|
|
—
|
|
Outstanding at December 31, 2018
|
319,086
|
|
|
13.53
|
|
|
42,152
|
|
|
14.14
|
|
Exercised
|
(11,055
|
)
|
|
5.57
|
|
|
—
|
|
|
—
|
|
Canceled/forfeited
|
(11,519
|
)
|
|
9.31
|
|
|
—
|
|
|
—
|
|
Expired
|
(4,733
|
)
|
|
10.00
|
|
|
(9,870
|
)
|
|
10.00
|
|
Outstanding at December 31, 2019
|
291,779
|
|
|
14.05
|
|
|
32,282
|
|
|
15.40
|
|
Range of
Exercise Price
|
Number
Outstanding
|
|
Weighted Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Life (Years)
|
|
Aggregate Intrinsic Value (in thousands)
|
|||||
$ 0.00-$10.00
|
181,188
|
|
|
$
|
7.64
|
|
|
5.3
|
|
—
|
|
|
$10.00-$20.00
|
14,634
|
|
|
$
|
16.28
|
|
|
2.9
|
|
—
|
|
|
$20.00-$30.00
|
95,957
|
|
|
$
|
25.83
|
|
|
2.3
|
|
—
|
|
|
Outstanding
|
291,779
|
|
|
$
|
14.05
|
|
|
4.2
|
|
$
|
—
|
|
Vested and expected to vest
|
290,892
|
|
|
$
|
14.07
|
|
|
4.2
|
|
$
|
—
|
|
Exercisable
|
277,299
|
|
|
$
|
14.38
|
|
|
4.0
|
|
$
|
—
|
|
|
Year ended December 31,
|
||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
||||||
Unrealized gain (loss) on equity securities
|
$
|
15,348
|
|
|
$
|
(5,019
|
)
|
|
$
|
—
|
|
Realized gain (loss) on equity securities
|
860
|
|
|
7,964
|
|
|
—
|
|
|||
Zinc options
|
—
|
|
|
753
|
|
|
—
|
|
|||
Interest rate swap, net
|
(178
|
)
|
|
(60
|
)
|
|
—
|
|
|||
Other
|
—
|
|
|
—
|
|
|
(864
|
)
|
|||
Fair value adjustments, net
|
$
|
16,030
|
|
|
$
|
3,638
|
|
|
$
|
(864
|
)
|
|
Fair Value at December 31, 2019
|
||||||||||||||
In thousands
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
35,646
|
|
|
$
|
35,646
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other derivative instruments, net
|
753
|
|
|
—
|
|
|
753
|
|
|
—
|
|
||||
|
$
|
36,399
|
|
|
$
|
35,646
|
|
|
$
|
753
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Silvertip contingent consideration
|
$
|
25,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
25,000
|
|
Other derivative instruments, net
|
275
|
|
|
—
|
|
|
275
|
|
|
—
|
|
||||
|
$
|
25,275
|
|
|
$
|
—
|
|
|
$
|
275
|
|
|
$
|
25,000
|
|
|
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
|
|
|
Year Ended December 31, 2019
|
||||||||||||||||||
In thousands
|
Balance at the beginning of the period
|
|
Revaluation
|
|
Settlements
|
|
Accretion
|
|
Balance at the
end of the period |
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Silvertip contingent consideration
|
$
|
49,276
|
|
|
$
|
—
|
|
|
$
|
(25,000
|
)
|
|
$
|
724
|
|
|
$
|
25,000
|
|
|
Year Ended December 31, 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
|
|
|
$
|
(274
|
)
|
|
$
|
(4,400
|
)
|
|
$
|
—
|
|
|
$
|
2,217
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Silvertip contingent consideration
|
$
|
47,965
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,311
|
|
|
$
|
49,276
|
|
Description
|
Valuation technique
|
Unobservable input
|
Range / Weighted Average
|
Property, plant, and equipment, Mining properties and Right of Use Assets
|
Discounted cash flow
|
Discount rate
|
7.5%
|
|
|
Long-term silver price per Oz
|
$17.00
|
|
|
Long-term zinc price per pound
|
$1.07
|
|
|
Long-term lead price per pound
|
$0.93
|
|
December 31, 2019
|
||||||||||||||||||
In thousands
|
Book Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
2024 Senior Notes(1)
|
$
|
226,885
|
|
|
$
|
228,585
|
|
|
$
|
—
|
|
|
$
|
228,585
|
|
|
$
|
—
|
|
Revolving Credit Facility(2)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
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:
|
|
|
|
|
|
|
|
|
|
||||||||||
2024 Senior Notes(1)
|
$
|
245,854
|
|
|
$
|
220,446
|
|
|
$
|
—
|
|
|
$
|
220,446
|
|
|
$
|
—
|
|
Revolving Credit Facility(2)
|
$
|
135,000
|
|
|
$
|
135,000
|
|
|
$
|
—
|
|
|
$
|
135,000
|
|
|
$
|
—
|
|
In thousands except average prices and notional ounces
|
2020
|
|
Thereafter
|
||||
Provisional silver sales contracts
|
$
|
8,116
|
|
|
$
|
—
|
|
Average silver price per ounce
|
$
|
17.89
|
|
|
$
|
—
|
|
Notional ounces
|
453,610
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional gold sales contracts
|
$
|
16,265
|
|
|
$
|
—
|
|
Average gold price per ounce
|
$
|
1,471
|
|
|
$
|
—
|
|
Notional ounces
|
11,054
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional zinc sales contracts
|
$
|
10,762
|
|
|
$
|
—
|
|
Average zinc price per pound
|
$
|
1.03
|
|
|
$
|
—
|
|
Notional pounds
|
10,411,742
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional lead sales contracts
|
$
|
5,485
|
|
|
$
|
—
|
|
Average lead price per pound
|
$
|
0.88
|
|
|
$
|
—
|
|
Notional pounds
|
6,205,968
|
|
|
—
|
|
|
December 31, 2019
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Provisional metal sales contracts
|
$
|
753
|
|
|
$
|
275
|
|
|
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
|
|
|
|
Year ended December 31,
|
||||||||||
Financial statement line
|
Derivative
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue
|
Provisional metal sales contracts
|
$
|
337
|
|
|
$
|
111
|
|
|
$
|
631
|
|
Fair value adjustments, net
|
Zinc options
|
—
|
|
|
753
|
|
|
—
|
|
|||
Fair value adjustments, net
|
Interest rate swaps
|
(178
|
)
|
|
(60
|
)
|
|
—
|
|
|||
|
|
$
|
159
|
|
|
$
|
804
|
|
|
$
|
631
|
|
In thousands except average prices and notional ounces
|
2020
|
||
Gold put options
|
|
||
Average gold strike price per ounce
|
$
|
1,408
|
|
Notional ounces
|
96,000
|
|
|
|
|
||
Gold call options
|
|
||
Average gold strike price per ounce
|
$
|
1,803
|
|
Notional ounces
|
96,000
|
|
|
December 31, 2019
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Gold zero cost collars
|
$
|
—
|
|
|
$
|
136
|
|
In thousands
|
December 31, 2018
|
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income
|
|
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings
|
|
December 31, 2019
|
|||||
Derivative contracts designated as cash flow hedges
|
$
|
—
|
|
|
(136
|
)
|
|
—
|
|
|
(136
|
)
|
|
Year ended December 31,
|
||||||||||
In thousands
|
2019
|
|
2018
|
|
2017
|
||||||
Foreign exchange gain (loss)
|
$
|
(4,346
|
)
|
|
$
|
(9,069
|
)
|
|
$
|
1,281
|
|
Interest income on notes receivable
|
199
|
|
|
1,776
|
|
|
—
|
|
|||
Gain (loss) on sale of assets and investments
|
(714
|
)
|
|
19
|
|
|
(1,037
|
)
|
|||
Write-down of Manquiri consideration
|
133
|
|
|
(18,599
|
)
|
|
—
|
|
|||
RMC receivable write-down
|
(1,040
|
)
|
|
(6,536
|
)
|
|
—
|
|
|||
Mexico inflation adjustment
|
—
|
|
|
1,939
|
|
|
—
|
|
|||
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
|
—
|
|
|
—
|
|
|
1,036
|
|
|||
Impairment of Equity Securities
|
—
|
|
|
—
|
|
|
(426
|
)
|
|||
Other
|
2,575
|
|
|
5,765
|
|
|
2,319
|
|
|||
Other, net
|
$
|
(3,193
|
)
|
|
$
|
(24,705
|
)
|
|
$
|
26,643
|
|
|
Year ended December 31,
|
||||||||||
In thousands except per share amounts
|
2019
|
|
2018
|
|
2017
|
||||||
Net income (loss) available to common stockholders:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
(346,896
|
)
|
|
$
|
(48,955
|
)
|
|
$
|
10,925
|
|
Income (loss) from discontinued operations
|
5,693
|
|
|
550
|
|
|
(12,244
|
)
|
|||
|
$
|
(341,203
|
)
|
|
$
|
(48,405
|
)
|
|
$
|
(1,319
|
)
|
|
|
|
|
|
|
||||||
Weighted average shares:
|
|
|
|
|
|
||||||
Basic
|
218,812
|
|
|
188,606
|
|
|
180,096
|
|
|||
Effect of stock-based compensation plans
|
—
|
|
|
—
|
|
|
4,048
|
|
|||
Diluted
|
218,812
|
|
|
188,606
|
|
|
184,144
|
|
|||
|
|
|
|
|
|
||||||
Basic income (loss) per share:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
(1.59
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.06
|
|
Income (loss) from discontinued operations
|
0.03
|
|
|
—
|
|
|
(0.07
|
)
|
|||
Basic(1)
|
$
|
(1.56
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
||||||
Diluted income (loss) per share:
|
|
|
|
|
|
||||||
Income (loss) from continuing operations
|
$
|
(1.59
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
0.06
|
|
Income (loss) from discontinued operations
|
0.03
|
|
|
—
|
|
|
(0.07
|
)
|
|||
Diluted(1)
|
$
|
(1.56
|
)
|
|
$
|
(0.26
|
)
|
|
$
|
(0.01
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
414,548
|
|
|
$
|
296,954
|
|
|
$
|
—
|
|
|
$
|
711,502
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales(1)
|
—
|
|
|
300,496
|
|
|
250,685
|
|
|
—
|
|
|
551,181
|
|
|||||
Amortization
|
876
|
|
|
81,759
|
|
|
96,241
|
|
|
—
|
|
|
178,876
|
|
|||||
General and administrative
|
31,913
|
|
|
808
|
|
|
1,772
|
|
|
—
|
|
|
34,493
|
|
|||||
Exploration
|
1,492
|
|
|
12,220
|
|
|
8,815
|
|
|
—
|
|
|
22,527
|
|
|||||
Impairment of long-lived assets
|
—
|
|
|
—
|
|
|
250,814
|
|
|
—
|
|
|
250,814
|
|
|||||
Pre-development, reclamation, and other
|
346
|
|
|
11,204
|
|
|
6,871
|
|
|
—
|
|
|
18,421
|
|
|||||
Total costs and expenses
|
34,627
|
|
|
406,487
|
|
|
615,198
|
|
|
—
|
|
|
1,056,312
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on debt extinguishment
|
(1,281
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,281
|
)
|
|||||
Fair value adjustments, net
|
16,039
|
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
16,030
|
|
|||||
Other, net
|
18,993
|
|
|
(1,106
|
)
|
|
(3,941
|
)
|
|
(17,139
|
)
|
|
(3,193
|
)
|
|||||
Interest expense, net of capitalized interest
|
(20,774
|
)
|
|
(2,591
|
)
|
|
(18,545
|
)
|
|
17,139
|
|
|
(24,771
|
)
|
|||||
Total other income (expense), net
|
12,977
|
|
|
(3,706
|
)
|
|
(22,486
|
)
|
|
—
|
|
|
(13,215
|
)
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(21,650
|
)
|
|
4,355
|
|
|
(340,730
|
)
|
|
—
|
|
|
(358,025
|
)
|
|||||
Income and mining tax (expense) benefit
|
(1,518
|
)
|
|
(3,750
|
)
|
|
16,397
|
|
|
—
|
|
|
11,129
|
|
|||||
Income (loss) from continuing operations
|
(23,168
|
)
|
|
605
|
|
|
(324,333
|
)
|
|
—
|
|
|
(346,896
|
)
|
|||||
Equity income (loss) in consolidated subsidiaries
|
(323,728
|
)
|
|
(10,100
|
)
|
|
9,760
|
|
|
324,068
|
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
5,693
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,693
|
|
|||||
NET INCOME (LOSS)
|
$
|
(341,203
|
)
|
|
$
|
(9,495
|
)
|
|
$
|
(314,573
|
)
|
|
$
|
324,068
|
|
|
$
|
(341,203
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on debt and equity securities
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|||||
Unrealized gain (loss) on cash flow hedges
|
(136
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(136
|
)
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
(341,280
|
)
|
|
$
|
(9,495
|
)
|
|
$
|
(314,573
|
)
|
|
$
|
324,068
|
|
|
$
|
(341,280
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
371,248
|
|
|
$
|
254,656
|
|
|
$
|
—
|
|
|
$
|
625,904
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales(1)
|
—
|
|
|
285,242
|
|
|
155,708
|
|
|
—
|
|
|
440,950
|
|
|||||
Amortization
|
940
|
|
|
61,489
|
|
|
66,044
|
|
|
—
|
|
|
128,473
|
|
|||||
General and administrative
|
30,868
|
|
|
398
|
|
|
79
|
|
|
—
|
|
|
31,345
|
|
|||||
Exploration
|
1,496
|
|
|
9,294
|
|
|
14,607
|
|
|
—
|
|
|
25,397
|
|
|||||
Pre-development, reclamation, and other
|
1,246
|
|
|
11,351
|
|
|
7,446
|
|
|
—
|
|
|
20,043
|
|
|||||
Total costs and expenses
|
34,550
|
|
|
367,774
|
|
|
243,884
|
|
|
—
|
|
|
646,208
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value adjustments, net
|
4,056
|
|
|
(418
|
)
|
|
|
|
|
—
|
|
|
3,638
|
|
|||||
Other, net
|
(403
|
)
|
|
617
|
|
|
(9,462
|
)
|
|
(15,457
|
)
|
|
(24,705
|
)
|
|||||
Interest expense, net of capitalized interest
|
(21,563
|
)
|
|
(1,479
|
)
|
|
(16,779
|
)
|
|
15,457
|
|
|
(24,364
|
)
|
|||||
Total other income (expense), net
|
(17,910
|
)
|
|
(1,280
|
)
|
|
(26,241
|
)
|
|
—
|
|
|
(45,431
|
)
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(52,460
|
)
|
|
2,194
|
|
|
(15,469
|
)
|
|
—
|
|
|
(65,735
|
)
|
|||||
Income and mining tax (expense) benefit
|
(548
|
)
|
|
(1,926
|
)
|
|
19,254
|
|
|
—
|
|
|
16,780
|
|
|||||
Income (loss) from continuing operations
|
(53,008
|
)
|
|
268
|
|
|
3,785
|
|
|
—
|
|
|
(48,955
|
)
|
|||||
Equity income (loss) in consolidated subsidiaries
|
3,593
|
|
|
(608
|
)
|
|
(74
|
)
|
|
(2,911
|
)
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
1,010
|
|
|
(284
|
)
|
|
(176
|
)
|
|
—
|
|
|
550
|
|
|||||
NET INCOME (LOSS)
|
$
|
(48,405
|
)
|
|
$
|
(624
|
)
|
|
$
|
3,535
|
|
|
$
|
(2,911
|
)
|
|
$
|
(48,405
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on debt securities, net of tax
|
26
|
|
|
|
|
|
|
|
|
—
|
|
|
26
|
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
(48,379
|
)
|
|
$
|
(624
|
)
|
|
$
|
3,535
|
|
|
$
|
(2,911
|
)
|
|
$
|
(48,379
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
433,050
|
|
|
$
|
276,548
|
|
|
$
|
—
|
|
|
$
|
709,598
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales(1)
|
—
|
|
|
293,340
|
|
|
146,920
|
|
|
—
|
|
|
440,260
|
|
|||||
Amortization
|
1,157
|
|
|
71,340
|
|
|
74,052
|
|
|
—
|
|
|
146,549
|
|
|||||
General and administrative
|
33,379
|
|
|
28
|
|
|
209
|
|
|
—
|
|
|
33,616
|
|
|||||
Exploration
|
1,592
|
|
|
13,689
|
|
|
15,030
|
|
|
—
|
|
|
30,311
|
|
|||||
Pre-development, reclamation, and other
|
4,705
|
|
|
7,497
|
|
|
6,734
|
|
|
—
|
|
|
18,936
|
|
|||||
Total costs and expenses
|
40,833
|
|
|
385,894
|
|
|
242,945
|
|
|
—
|
|
|
669,672
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss on debt extinguishments
|
(9,342
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,342
|
)
|
|||||
Fair value adjustments, net
|
—
|
|
|
(864
|
)
|
|
—
|
|
|
—
|
|
|
(864
|
)
|
|||||
Other, net
|
21,254
|
|
|
2,936
|
|
|
10,179
|
|
|
(7,726
|
)
|
|
26,643
|
|
|||||
Interest expense, net of capitalized interest
|
(14,657
|
)
|
|
(975
|
)
|
|
(8,534
|
)
|
|
7,726
|
|
|
(16,440
|
)
|
|||||
Total other income (expense), net
|
(2,745
|
)
|
|
1,097
|
|
|
1,645
|
|
|
—
|
|
|
(3
|
)
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(43,578
|
)
|
|
48,253
|
|
|
35,248
|
|
|
—
|
|
|
39,923
|
|
|||||
Income and mining tax (expense) benefit
|
2,170
|
|
|
(5,758
|
)
|
|
(25,410
|
)
|
|
—
|
|
|
(28,998
|
)
|
|||||
Income (loss) from continuing operations
|
(41,408
|
)
|
|
42,495
|
|
|
9,838
|
|
|
—
|
|
|
10,925
|
|
|||||
Equity income (loss) in consolidated subsidiaries
|
40,089
|
|
|
(577
|
)
|
|
4,416
|
|
|
(43,928
|
)
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
(12,244
|
)
|
|
—
|
|
|
(12,244
|
)
|
|||||
NET INCOME (LOSS)
|
$
|
(1,319
|
)
|
|
$
|
41,918
|
|
|
$
|
2,010
|
|
|
$
|
(43,928
|
)
|
|
$
|
(1,319
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on debt securities, net of tax
|
3,227
|
|
|
915
|
|
|
—
|
|
|
(915
|
)
|
|
3,227
|
|
|||||
Reclassification adjustments for impairment of equity securities, net of tax
|
426
|
|
|
426
|
|
|
—
|
|
|
(426
|
)
|
|
426
|
|
|||||
Reclassification adjustments for realized gain (loss) on sale of equity securities, net of tax
|
1,354
|
|
|
486
|
|
|
—
|
|
|
(486
|
)
|
|
1,354
|
|
|||||
Other comprehensive income (loss)
|
5,007
|
|
|
1,827
|
|
|
—
|
|
|
(1,827
|
)
|
|
5,007
|
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
3,688
|
|
|
$
|
43,745
|
|
|
$
|
2,010
|
|
|
$
|
(45,755
|
)
|
|
$
|
3,688
|
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
$
|
(377,159
|
)
|
|
$
|
125,325
|
|
|
$
|
19,646
|
|
|
$
|
324,068
|
|
|
$
|
91,880
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(491
|
)
|
|
(48,324
|
)
|
|
(50,957
|
)
|
|
—
|
|
|
(99,772
|
)
|
|||||
Proceeds from the sale of assets
|
—
|
|
|
913
|
|
|
120
|
|
|
—
|
|
|
1,033
|
|
|||||
Purchase of investments
|
(5,019
|
)
|
|
(1
|
)
|
|
(3
|
)
|
|
—
|
|
|
(5,023
|
)
|
|||||
Sales of investments
|
2,109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,109
|
|
|||||
Proceeds from notes receivable
|
7,168
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,168
|
|
|||||
Other
|
2,051
|
|
|
32
|
|
|
(164
|
)
|
|
—
|
|
|
1,919
|
|
|||||
Investments in consolidated subsidiaries
|
323,561
|
|
|
180
|
|
|
327
|
|
|
(324,068
|
)
|
|
—
|
|
|||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
329,379
|
|
|
(47,200
|
)
|
|
(50,677
|
)
|
|
(324,068
|
)
|
|
(92,566
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of common stock
|
123,059
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123,059
|
|
|||||
Issuance of notes and bank borrowings, net of issuance costs
|
60,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
60,000
|
|
|||||
Payments on debt, capital leases, and associated costs
|
(195,878
|
)
|
|
(17,364
|
)
|
|
(8,612
|
)
|
|
—
|
|
|
(221,854
|
)
|
|||||
Silvertip contingent consideration
|
—
|
|
|
—
|
|
|
(18,697
|
)
|
|
—
|
|
|
(18,697
|
)
|
|||||
Net intercompany financing activity
|
57,930
|
|
|
(59,061
|
)
|
|
1,131
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
(3,404
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,404
|
)
|
|||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
41,707
|
|
|
(76,425
|
)
|
|
(26,178
|
)
|
|
—
|
|
|
(60,896
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
(2
|
)
|
|
533
|
|
|
—
|
|
|
531
|
|
|||||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
(6,073
|
)
|
|
1,698
|
|
|
(56,676
|
)
|
|
—
|
|
|
(61,051
|
)
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
12,748
|
|
|
25,540
|
|
|
79,781
|
|
|
—
|
|
|
118,069
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
6,675
|
|
|
$
|
27,238
|
|
|
$
|
23,105
|
|
|
$
|
—
|
|
|
$
|
57,018
|
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue
|
$
|
—
|
|
|
$
|
12,346
|
|
|
$
|
73,065
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
||||||
Costs applicable to sales(1)
|
—
|
|
|
12,269
|
|
|
74,074
|
|
|||
Amortization
|
—
|
|
|
—
|
|
|
5,899
|
|
|||
General and administrative
|
—
|
|
|
41
|
|
|
172
|
|
|||
Exploration
|
—
|
|
|
—
|
|
|
23
|
|
|||
Write-downs
|
—
|
|
|
—
|
|
|
3,390
|
|
|||
Pre-development, reclamation, and other
|
—
|
|
|
265
|
|
|
4,664
|
|
|||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
||||||
Interest expense, net of capitalized interest
|
—
|
|
|
(3
|
)
|
|
(27
|
)
|
|||
Other, net
|
—
|
|
|
(260
|
)
|
|
1,763
|
|
|||
Pretax profit (loss) on discontinued operations related to major classes of pretax profit (loss)
|
—
|
|
|
(492
|
)
|
|
(13,421
|
)
|
|||
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
|
|
|
(13,421
|
)
|
|||
Income and mining tax (expense) benefit
|
—
|
|
|
(483
|
)
|
|
1,177
|
|
|||
Income (loss) from discontinued operations
|
$
|
5,693
|
|
|
$
|
550
|
|
|
$
|
(12,244
|
)
|
In thousands
|
December 31, 2019
|
|
December 31, 2018
|
||||
Accrued salaries and wages
|
$
|
20,047
|
|
|
$
|
22,229
|
|
Silvertip contingent consideration
|
25,000
|
|
|
25,000
|
|
||
Deferred revenue (1)
|
16,672
|
|
|
3,164
|
|
||
Income and mining taxes
|
11,243
|
|
|
16,474
|
|
||
Accrued operating costs
|
4,163
|
|
|
10,524
|
|
||
Taxes other than income and mining
|
3,554
|
|
|
3,639
|
|
||
Accrued interest payable
|
1,833
|
|
|
1,589
|
|
||
Operating lease liabilities
|
13,104
|
|
|
—
|
|
||
Accrued liabilities and other
|
$
|
95,616
|
|
|
$
|
82,619
|
|
In thousands
|
December 31, 2019
|
|
December 31, 2018
|
||||
Cash and cash equivalents
|
$
|
55,645
|
|
|
$
|
115,081
|
|
Restricted cash equivalents
|
1,373
|
|
|
2,988
|
|
||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
$
|
57,018
|
|
|
$
|
118,069
|
|
|
Year ended December 31,
|
||||||||||
Non-cash financing and investing activities:
|
2019
|
|
2018
|
|
2017
|
||||||
Finance lease obligations
|
$
|
16,615
|
|
|
$
|
45,813
|
|
|
$
|
34,604
|
|
Non-cash extinguishment of senior notes
|
20,009
|
|
|
—
|
|
|
—
|
|
|||
Non-cash acquisitions and related deferred taxes
|
—
|
|
|
110,273
|
|
|
131,833
|
|
|||
Non-cash Permit contingent consideration
|
5,973
|
|
|
—
|
|
|
—
|
|
|||
Other cash flow information:
|
|
|
|
|
|
||||||
Interest paid
|
24,428
|
|
|
22,916
|
|
|
21,943
|
|
|||
Income taxes paid
|
33,700
|
|
|
50,400
|
|
|
13,000
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
$
|
154,870
|
|
|
$
|
162,123
|
|
|
$
|
199,469
|
|
|
$
|
195,040
|
|
Costs applicable to sales
|
131,650
|
|
|
131,948
|
|
|
140,952
|
|
|
146,631
|
|
||||
Amortization
|
41,876
|
|
|
43,204
|
|
|
45,678
|
|
|
48,118
|
|
||||
Gross Profit
|
(18,656
|
)
|
|
(13,029
|
)
|
|
12,839
|
|
|
291
|
|
||||
Exploration
|
3,714
|
|
|
5,719
|
|
|
5,893
|
|
|
7,201
|
|
||||
Other operating expenses (General and administrative, Pre-development, reclamation, and other, and Impairment of long-lived assets)
|
13,908
|
|
|
12,084
|
|
|
14,486
|
|
|
263,250
|
|
||||
Income (loss) from continuing operations
|
(24,894
|
)
|
|
(36,764
|
)
|
|
(14,277
|
)
|
|
(270,961
|
)
|
||||
Income (loss) from discontinued operations
|
5,693
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income (loss)
|
(19,201
|
)
|
|
(36,764
|
)
|
|
(14,277
|
)
|
|
(270,961
|
)
|
||||
Cash provided by (used in) operating activities
|
(15,846
|
)
|
|
26,435
|
|
|
41,996
|
|
|
39,295
|
|
||||
Capital expenditures
|
27,438
|
|
|
20,749
|
|
|
30,678
|
|
|
20,907
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income (loss) from continuing operations
|
$
|
(0.12
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(1.13
|
)
|
Net income (loss) from discontinued operations
|
0.03
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
||||
Basic
|
$
|
(0.09
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(1.13
|
)
|
|
|
|
|
|
|
|
|
||||||||
Diluted income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
$
|
(0.12
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(1.13
|
)
|
Net income (loss) from discontinued operations
|
0.03
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
||||
Diluted
|
$
|
(0.09
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
(0.06
|
)
|
|
$
|
(1.13
|
)
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenues
|
$
|
163,267
|
|
|
$
|
169,987
|
|
|
$
|
148,795
|
|
|
$
|
143,855
|
|
Costs applicable to sales
|
99,340
|
|
|
108,246
|
|
|
116,857
|
|
|
116,507
|
|
||||
Amortization
|
30,777
|
|
|
29,459
|
|
|
31,184
|
|
|
37,053
|
|
||||
Gross Profit
|
33,150
|
|
|
32,282
|
|
|
754
|
|
|
(9,705
|
)
|
||||
Exploration
|
6,683
|
|
|
6,429
|
|
|
8,157
|
|
|
4,128
|
|
||||
Other operating expenses (General and administrative, Pre-development, reclamation, and other, and Impairment of long-lived assets)
|
13,029
|
|
|
11,270
|
|
|
15,850
|
|
|
11,239
|
|
||||
Income (loss) from continuing operations
|
691
|
|
|
2,930
|
|
|
(53,044
|
)
|
|
468
|
|
||||
Income (loss) from discontinued operations
|
550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income (loss)
|
1,241
|
|
|
2,930
|
|
|
(53,044
|
)
|
|
468
|
|
||||
Cash provided by (used in) operating activities
|
15,541
|
|
|
(1,294
|
)
|
|
5,789
|
|
|
72
|
|
||||
Capital expenditures
|
42,345
|
|
|
41,165
|
|
|
39,472
|
|
|
17,805
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
(0.29
|
)
|
|
$
|
—
|
|
Net income (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Basic
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
(0.29
|
)
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted income (loss) per share:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) from continuing operations
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
(0.29
|
)
|
|
$
|
—
|
|
Net income (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Diluted
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
(0.29
|
)
|
|
$
|
—
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A.
|
Controls and Procedures
|
(a)
|
Disclosure Controls and Procedures
|
(b)
|
Management’s Report on Internal Control Over Financial Reporting
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the consolidated financial statements.
|
(c)
|
Changes in Internal Control Over Financial Reporting
|
Item 9B.
|
Other Information
|
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
Item 11.
|
Executive Compensation
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Plan category
|
|
Number of shares to be
issued upon exercise of outstanding options, warrants and rights |
|
Weighted-average exercise
price of outstanding options,
warrants and rights
|
|
Number of shares remaining
available for future issuance under equity compensation plans (excluding securities reflected in column (a) (1) |
||||
|
|
(a)
|
|
(b)
|
|
(c)
|
||||
Equity compensation plans approved by security holders
|
|
291,779
|
|
|
$
|
14.05
|
|
|
4,230,413
|
|
Equity compensation plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
291,779
|
|
|
$
|
14.05
|
|
|
4,230,413
|
|
(1)
|
Amounts include 1,214,145 performance shares that cliff vest three years after the date of grant if certain market and performance criteria are met, if the recipient remains an employee of the Company and subject to approval of the Compensation Committee of the Board of Directors.
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
Item 14.
|
Principal Accountant Fees and Services
|
2.1
|
|
2.2
|
|
3.1
|
|
3.2
|
|
3.3
|
|
3.4
|
|
4.1
|
|
4.2
|
|
4.3
|
|
10.1
|
|
10.2
|
|
10.3
|
|
10.4
|
|
10.5
|
|
10.6
|
|
10.7
|
|
10.8
|
|
10.9
|
|
10.10
|
|
10.11
|
|
10.12
|
Item 16.
|
Form 10-K Summary
|
Date:
|
February 19, 2020
|
By:
|
/s/ Mitchell J. Krebs
|
|
|
|
Mitchell J. Krebs
(Director, President, and Chief Executive Officer)
|
/s/ Mitchell J. Krebs______________________
Mitchell J. Krebs
|
Director, President, and Chief Executive Officer
(Principal Executive Officer)
|
February 19, 2020
|
|
|
|
/s/ Thomas S. Whelan_____________________
Thomas S. Whelan
|
Senior Vice President and Chief Financial Officer (Principal Financial Officer)
|
February 19, 2020
|
|
|
|
/s/ Ken Watkinson______________________
Ken Watkinson
|
Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)
|
February 19, 2020
|
|
|
|
/s/ Linda L. Adamany_____________________
Linda L. Adamany
|
Director
|
February 19, 2020
|
|
|
|
/s/ Sebastian Edwards_____________________
Sebastian Edwards
|
Director
|
February 19, 2020
|
|
|
|
/s/ Randolph E. Gress_____________________
Randolph E. Gress |
Director
|
February 19, 2020
|
|
|
|
/s/ Eduardo Luna_______________________
Eduardo Luna |
Director
|
February 19, 2020
|
|
|
|
/s/ Jessica L. McDonald___________________
Jessica L. McDonald |
Director
|
February 19, 2020
|
|
|
|
/s/ Robert E. Mellor______________________
Robert E. Mellor
|
Director
|
February 19, 2020
|
|
|
|
/s/ John H. Robinson______________________
John H. Robinson
|
Director
|
February 19, 2020
|
|
|
|
/s/ Brian E. Sandoval______________________
Brian E. Sandoval |
Director
|
February 19, 2020
|
|
|
|
/s/ J. Kenneth Thompson___________________
J. Kenneth Thompson |
Director
|
February 19, 2020
|
•
|
provide that, except for a vacancy caused by the removal of a director as provided in the Bylaws, a vacancy on the Company’s Board may be filled by a person selected by a majority of the remaining directors then in office, whether or not less than a quorum;
|
•
|
provide that stockholders seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide notice in writing in a timely manner and comply with requirements as to the form and content of such notice;
|
•
|
provide that a stockholder, or group of up to 20 stockholders, that has owned continuously for at least three years shares of common stock representing an aggregate of at least three percent of the Company’s outstanding shares of common stock, may nominate and include in the Company’s proxy materials director nominees of the greater of two or 20% of the number of directors then in office, provided that the stockholder(s) and nominee(s) satisfy the requirements in the Bylaws; and
|
•
|
do not provide for cumulative voting rights for the election of directors.
|
Date on Which Restrictions Lapse
|
Number of Units for Which Restrictions Lapse
|
|
|
Coeur Mining, Inc.
|
|
|
|
By:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participant
|
|
|
Participant's Signature
|
|
|
|
|
|
|
|
Name
|
State/Country of Incorporation
|
Ownership Percentage
|
Coeur Rochester, Inc.
|
Delaware
|
100%
|
Coeur Alaska, Inc.
|
Delaware
|
100%
|
Coeur Sub One, Inc.
|
Delaware
|
100%
|
Coeur Sub Two, Inc.
|
Delaware
|
100%
|
Mexco Holdings, LLC
|
Nevada
|
100%
|
Mexco Resources, LLC
|
Nevada
|
100%
|
Servicios Administrativos Palmarejo, S.A. de C.V.
|
Mexico
|
100%
|
Servicios Profesionales Palmarejo, S.A. de C.V.
|
Mexico
|
100%
|
Palmarejo Silver and Gold ULC
|
Canada
|
100%
|
Ocampo Resources, Inc.
|
Nevada
|
100%
|
Ocampo Services, Inc.
|
Nevada
|
100%
|
Coeur Mexicana, S.A. de C.V.
|
Mexico
|
100%
|
Coeur La Preciosa Silver Corp.
|
Canada
|
100%
|
Proyectos Mineros La Preciosa S.A. de C.V.
|
Mexico
|
100%
|
Coeur San Miguel Corp.
|
Delaware
|
100%
|
Magnetic Resources Ltd.
|
Canada
|
100%
|
Wharf Resources (U.S.A.), Inc.
|
Colorado
|
100%
|
Wharf Resources Management Inc.
|
Delaware
|
100%
|
Wharf Reward Mines Inc.
|
Delaware
|
100%
|
Wharf Gold Mines Inc.
|
Delaware
|
100%
|
Golden Reward Mining Company Limited Partnership
|
Delaware
|
100%
|
Grizzly Acquisition LLC
|
Delaware
|
100%
|
Coeur Silvertip Holdings Ltd.
|
Canada
|
100%
|
Coeur Sterling Holdings LLC
|
Delaware
|
100%
|
Sterling Intermediate Holdco, Inc.
|
Delaware
|
100%
|
1183633 B.C. ULC
|
Canada
|
100%
|
Bluestone Resources (Alaska) Inc.
|
Alaska
|
100%
|
Coeur Sterling, Inc.
|
Nevada
|
100%
|
1.
|
I have reviewed this Annual Report on Form 10-K 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 Annual Report on Form 10-K 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
|
February 19, 2020
|
/s/ Thomas S. Whelan
|
Thomas S. Whelan
|
February 19, 2020
|
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 Proposed1
($)
|
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
|
5
|
—
|
—
|
—
|
—
|
$7,000
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rochester
|
1
|
—
|
—
|
—
|
—
|
$3,380
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wharf
|
2
|
—
|
—
|
—
|
—
|
$3,761
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sterling
|
—
|
—
|
—
|
—
|
—
|
$1,210
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
8
|
—
|
—
|
—
|
—
|
$15,351
|
—
|
NO
|
NO
|
—
|
—
|
—
|