☑
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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☐
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Delaware
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82-0109423
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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104 S. Michigan Ave.
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Suite 900
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Chicago,
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Illinois
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60603
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock (par value $.01 per share)
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CDE
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New York Stock Exchange
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Large accelerated filer
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☑
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
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Part I.
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Item 1. Financial Statements
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Condensed Consolidated Balance Sheets (Unaudited)
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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
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Condensed Consolidated Statements of Cash Flows (Unaudited)
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Condensed Consolidated Statement of Changes in Stockholders’ Equity (Unaudited)
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Notes to Condensed Consolidated Financial Statements (Unaudited)
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Consolidated Financial Results
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Results of Operations
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Liquidity and Capital Resources
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Non-GAAP Financial Performance Measures
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Item 4. Controls and Procedures
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Part II.
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Item 1. Legal Proceedings
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Item 1A. Risk Factors
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Item 4. Mine Safety Disclosures
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Item 5. Other Information
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Item 6. Exhibits
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Signatures
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March 31, 2020
|
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December 31, 2019
|
||||
ASSETS
|
Notes
|
In thousands, except share data
|
||||||
CURRENT ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
52,895
|
|
|
$
|
55,645
|
|
Receivables
|
4
|
19,722
|
|
|
18,666
|
|
||
Inventory
|
5
|
51,857
|
|
|
55,886
|
|
||
Ore on leach pads
|
5
|
83,035
|
|
|
66,192
|
|
||
Prepaid expenses and other
|
|
14,150
|
|
|
14,047
|
|
||
|
|
221,659
|
|
|
210,436
|
|
||
NON-CURRENT ASSETS
|
|
|
|
|
||||
Property, plant and equipment, net
|
|
242,018
|
|
|
248,789
|
|
||
Mining properties, net
|
|
702,960
|
|
|
711,955
|
|
||
Ore on leach pads
|
5
|
66,703
|
|
|
71,539
|
|
||
Restricted assets
|
|
8,123
|
|
|
8,752
|
|
||
Equity and debt securities
|
6
|
26,826
|
|
|
35,646
|
|
||
Receivables
|
4
|
23,149
|
|
|
28,709
|
|
||
Other
|
|
57,659
|
|
|
62,810
|
|
||
TOTAL ASSETS
|
|
$
|
1,349,097
|
|
|
$
|
1,378,636
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
|
||||
Accounts payable
|
|
$
|
61,519
|
|
|
$
|
69,176
|
|
Accrued liabilities and other
|
19
|
49,935
|
|
|
95,616
|
|
||
Debt
|
8
|
23,588
|
|
|
22,746
|
|
||
Reclamation
|
9
|
3,094
|
|
|
3,114
|
|
||
|
|
138,136
|
|
|
190,652
|
|
||
NON-CURRENT LIABILITIES
|
|
|
|
|
||||
Debt
|
8
|
319,521
|
|
|
272,751
|
|
||
Reclamation
|
9
|
135,436
|
|
|
133,417
|
|
||
Deferred tax liabilities
|
|
36,472
|
|
|
41,976
|
|
||
Other long-term liabilities
|
|
58,888
|
|
|
72,836
|
|
||
|
|
550,317
|
|
|
520,980
|
|
||
COMMITMENTS AND CONTINGENCIES
|
17
|
|
|
|
||||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 243,586,226 issued and outstanding at March 31, 2020 and 241,529,021 at December 31, 2019
|
|
2,436
|
|
|
2,415
|
|
||
Additional paid-in capital
|
|
3,603,785
|
|
|
3,598,472
|
|
||
Accumulated other comprehensive income (loss)
|
|
70
|
|
|
(136
|
)
|
||
Accumulated deficit
|
|
(2,945,647
|
)
|
|
(2,933,747
|
)
|
||
|
|
660,644
|
|
|
667,004
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
1,349,097
|
|
|
$
|
1,378,636
|
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
|
Notes
|
In thousands, except share data
|
||||||
Revenue
|
3
|
$
|
173,167
|
|
|
$
|
154,870
|
|
COSTS AND EXPENSES
|
|
|
|
|
||||
Costs applicable to sales(1)
|
3
|
118,917
|
|
|
131,650
|
|
||
Amortization
|
|
36,162
|
|
|
41,876
|
|
||
General and administrative
|
|
8,920
|
|
|
9,474
|
|
||
Exploration
|
|
6,386
|
|
|
3,714
|
|
||
Pre-development, reclamation, and other
|
|
6,555
|
|
|
4,434
|
|
||
Total costs and expenses
|
|
176,940
|
|
|
191,148
|
|
||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
||||
Fair value adjustments, net
|
12
|
(8,819
|
)
|
|
9,120
|
|
||
Interest expense, net of capitalized interest
|
8
|
(5,128
|
)
|
|
(6,454
|
)
|
||
Other, net
|
14
|
1,881
|
|
|
60
|
|
||
Total other income (expense), net
|
|
(12,066
|
)
|
|
2,726
|
|
||
Income (loss) before income and mining taxes
|
|
(15,839
|
)
|
|
(33,552
|
)
|
||
Income and mining tax (expense) benefit
|
10
|
3,939
|
|
|
8,658
|
|
||
Income (loss) from continuing operations
|
|
$
|
(11,900
|
)
|
|
$
|
(24,894
|
)
|
Income (loss) from discontinued operations
|
18
|
—
|
|
|
5,693
|
|
||
NET INCOME (LOSS)
|
|
$
|
(11,900
|
)
|
|
$
|
(19,201
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
||||
Unrealized gain (loss) on cash flow hedges, net of tax of $22 for the three months ended March 31, 2020
|
|
206
|
|
|
—
|
|
||
Unrealized gain (loss) on debt and equity securities
|
|
—
|
|
|
59
|
|
||
Other comprehensive income (loss)
|
|
206
|
|
|
59
|
|
||
COMPREHENSIVE INCOME (LOSS)
|
|
$
|
(11,694
|
)
|
|
$
|
(19,142
|
)
|
|
|
|
|
|
||||
NET INCOME (LOSS) PER SHARE
|
15
|
|
|
|
||||
Basic income (loss) per share:
|
|
|
|
|
||||
Net income (loss) from continuing operations
|
|
$
|
(0.05
|
)
|
|
$
|
(0.12
|
)
|
Net income (loss) from discontinued operations
|
|
0.00
|
|
|
0.03
|
|
||
Basic(2)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.09
|
)
|
Diluted income (loss) per share:
|
|
|
|
|
||||
Net income (loss) from continuing operations
|
|
$
|
(0.05
|
)
|
|
$
|
(0.12
|
)
|
Net income (loss) from discontinued operations
|
|
0.00
|
|
|
0.03
|
|
||
Diluted(2)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.09
|
)
|
|
|
Three Months Ended March 31,
|
||||||
|
|
2020
|
|
2019
|
||||
|
Notes
|
In thousands
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net income (loss)
|
|
$
|
(11,900
|
)
|
|
$
|
(19,201
|
)
|
(Income) loss from discontinued operations
|
|
—
|
|
|
(5,693
|
)
|
||
Adjustments:
|
|
|
|
|
||||
Amortization
|
|
36,162
|
|
|
41,876
|
|
||
Accretion
|
|
2,847
|
|
|
2,943
|
|
||
Deferred taxes
|
|
(5,487
|
)
|
|
(8,259
|
)
|
||
Fair value adjustments, net
|
12
|
8,819
|
|
|
(9,120
|
)
|
||
Stock-based compensation
|
11
|
2,013
|
|
|
2,223
|
|
||
Gain on modification of right of use lease
|
7
|
(4,051
|
)
|
|
—
|
|
||
Write-downs
|
|
10,381
|
|
|
15,447
|
|
||
Deferred revenue recognition
|
17
|
(7,548
|
)
|
|
(445
|
)
|
||
Other
|
|
(1,092
|
)
|
|
1,695
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Receivables
|
|
(813
|
)
|
|
(9,735
|
)
|
||
Prepaid expenses and other current assets
|
|
(346
|
)
|
|
(2,684
|
)
|
||
Inventory and ore on leach pads
|
|
(21,925
|
)
|
|
(18,821
|
)
|
||
Accounts payable and accrued liabilities
|
|
(15,051
|
)
|
|
(6,072
|
)
|
||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS
|
|
(7,991
|
)
|
|
(15,846
|
)
|
||
CASH PROVIDED BY (USED IN )OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
—
|
|
||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
|
(7,991
|
)
|
|
(15,846
|
)
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Capital expenditures
|
|
(22,208
|
)
|
|
(27,438
|
)
|
||
Proceeds from the sale of assets
|
18
|
4,506
|
|
|
847
|
|
||
Proceeds from notes receivable
|
|
—
|
|
|
5,168
|
|
||
Other
|
|
(17
|
)
|
|
1,741
|
|
||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS
|
|
(17,719
|
)
|
|
(19,682
|
)
|
||
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
—
|
|
||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
|
(17,719
|
)
|
|
(19,682
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Issuance of notes and bank borrowings, net of issuance costs
|
8
|
50,000
|
|
|
15,000
|
|
||
Payments on debt, finance leases, and associated costs
|
8
|
(5,901
|
)
|
|
(22,356
|
)
|
||
Silvertip contingent consideration
|
17
|
(18,750
|
)
|
|
—
|
|
||
Other
|
|
(1,973
|
)
|
|
(3,364
|
)
|
||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS
|
|
23,376
|
|
|
(10,720
|
)
|
||
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS
|
|
—
|
|
|
—
|
|
||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
23,376
|
|
|
(10,720
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
|
(626
|
)
|
|
201
|
|
||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
(2,960
|
)
|
|
(46,047
|
)
|
||
Less net cash used in discontinued operations(1)
|
|
—
|
|
|
—
|
|
||
|
|
(2,960
|
)
|
|
(46,047
|
)
|
||
Cash, cash equivalents and restricted cash at beginning of period
|
|
57,018
|
|
|
118,069
|
|
||
Cash, cash equivalents and restricted cash at end of period
|
|
$
|
54,058
|
|
|
$
|
72,022
|
|
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, 2019
|
241,529
|
|
|
$
|
2,415
|
|
|
$
|
3,598,472
|
|
|
$
|
(2,933,747
|
)
|
|
$
|
(136
|
)
|
|
$
|
667,004
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,900
|
)
|
|
—
|
|
|
(11,900
|
)
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
206
|
|
|
206
|
|
|||||
Common stock issued for Silvertip contingent consideration payment
|
878
|
|
|
9
|
|
|
5,286
|
|
|
—
|
|
|
—
|
|
|
5,295
|
|
|||||
Common stock issued/canceled under long-term incentive plans and director fees and options, net
|
1,179
|
|
|
12
|
|
|
27
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||
Balances at March 31, 2020
|
243,586
|
|
|
$
|
2,436
|
|
|
$
|
3,603,785
|
|
|
$
|
(2,945,647
|
)
|
|
$
|
70
|
|
|
$
|
660,644
|
|
In thousands
|
Common
Stock
Shares
|
|
Common
Stock Par
Value
|
|
Additional
Paid-In Capital
|
|
Accumulated
Deficit
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Total
|
|||||||||||
Balances at December 31, 2018
|
203,310
|
|
|
$
|
2,033
|
|
|
$
|
3,443,082
|
|
|
$
|
(2,592,544
|
)
|
|
$
|
(59
|
)
|
|
852,512
|
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,201
|
)
|
|
—
|
|
|
(19,201
|
)
|
|||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|
59
|
|
|||||
Common stock issued under stock-based compensation plans, net
|
1,801
|
|
|
18
|
|
|
(1,053
|
)
|
|
—
|
|
|
—
|
|
|
(1,035
|
)
|
|||||
Balances at March 31, 2019
|
205,111
|
|
|
$
|
2,051
|
|
|
$
|
3,442,029
|
|
|
$
|
(2,611,745
|
)
|
|
$
|
—
|
|
|
$
|
832,335
|
|
|
Three months ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
Opening Balance
|
$
|
11,061
|
|
|
$
|
12,918
|
|
Revenue Recognized
|
(556
|
)
|
|
$
|
(445
|
)
|
|
Closing Balance
|
$
|
10,505
|
|
|
$
|
12,473
|
|
|
Three months ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
Opening Balance
|
$
|
15,010
|
|
|
$
|
—
|
|
Revenue Recognized
|
(6,992
|
)
|
|
$
|
—
|
|
|
Closing Balance
|
$
|
8,018
|
|
|
$
|
—
|
|
Three months ended March 31, 2020
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Other
|
|
Total
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gold sales
|
$
|
41,647
|
|
|
$
|
8,666
|
|
|
$
|
51,666
|
|
|
$
|
25,626
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
127,605
|
|
Silver sales
|
32,692
|
|
|
10,739
|
|
|
—
|
|
|
248
|
|
|
1,230
|
|
|
—
|
|
|
44,909
|
|
|||||||
Zinc sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(662
|
)
|
|
—
|
|
|
(662
|
)
|
|||||||
Lead sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,315
|
|
|
—
|
|
|
1,315
|
|
|||||||
Metal sales
|
74,339
|
|
|
19,405
|
|
|
51,666
|
|
|
25,874
|
|
|
1,883
|
|
|
—
|
|
|
173,167
|
|
|||||||
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Costs applicable to sales(1)
|
35,974
|
|
|
16,956
|
|
|
30,507
|
|
|
17,823
|
|
|
17,657
|
|
|
—
|
|
|
118,917
|
|
|||||||
Amortization
|
13,175
|
|
|
2,904
|
|
|
11,922
|
|
|
2,444
|
|
|
5,345
|
|
|
372
|
|
|
36,162
|
|
|||||||
Exploration
|
1,492
|
|
|
220
|
|
|
1,772
|
|
|
4
|
|
|
251
|
|
|
2,647
|
|
|
6,386
|
|
|||||||
Other operating expenses
|
722
|
|
|
1,246
|
|
|
331
|
|
|
442
|
|
|
2,374
|
|
|
10,360
|
|
|
15,475
|
|
|||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fair value adjustments, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,819
|
)
|
|
(8,819
|
)
|
|||||||
Interest expense, net
|
(155
|
)
|
|
(268
|
)
|
|
(309
|
)
|
|
(51
|
)
|
|
(259
|
)
|
|
(4,086
|
)
|
|
(5,128
|
)
|
|||||||
Other, net
|
(47
|
)
|
|
(53
|
)
|
|
71
|
|
|
(13
|
)
|
|
1,130
|
|
|
793
|
|
|
1,881
|
|
|||||||
Income and mining tax (expense) benefit
|
2,287
|
|
|
(43
|
)
|
|
—
|
|
|
(475
|
)
|
|
—
|
|
|
2,170
|
|
|
3,939
|
|
|||||||
Income (loss) from continuing operations
|
$
|
25,061
|
|
|
$
|
(2,285
|
)
|
|
$
|
6,896
|
|
|
$
|
4,622
|
|
|
$
|
(22,873
|
)
|
|
$
|
(23,321
|
)
|
|
$
|
(11,900
|
)
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Segment assets(2)
|
$
|
307,662
|
|
|
$
|
295,972
|
|
|
$
|
188,470
|
|
|
$
|
85,531
|
|
|
$
|
161,214
|
|
|
$
|
164,745
|
|
|
$
|
1,203,594
|
|
Capital expenditures
|
$
|
7,080
|
|
|
$
|
5,058
|
|
|
$
|
4,808
|
|
|
$
|
409
|
|
|
$
|
4,616
|
|
|
$
|
237
|
|
|
$
|
22,208
|
|
Three months ended March 31, 2019
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Other
|
|
Total
|
||||||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gold sales
|
$
|
31,600
|
|
|
$
|
11,053
|
|
|
$
|
40,286
|
|
|
$
|
23,825
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
106,764
|
|
|
Silver sales
|
21,625
|
|
|
15,317
|
|
|
—
|
|
|
217
|
|
|
2,955
|
|
|
—
|
|
|
40,114
|
|
|||||||
Zinc sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,634
|
|
|
—
|
|
|
5,634
|
|
|||||||
Lead sales
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,358
|
|
|
—
|
|
|
2,358
|
|
|||||||
Metal sales
|
53,225
|
|
|
26,370
|
|
|
40,286
|
|
|
24,042
|
|
|
10,947
|
|
|
—
|
|
|
154,870
|
|
|||||||
Costs and Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Costs applicable to sales(1)
|
33,244
|
|
|
22,454
|
|
|
32,175
|
|
|
17,392
|
|
|
26,385
|
|
|
—
|
|
|
131,650
|
|
|||||||
Amortization
|
14,528
|
|
|
4,037
|
|
|
11,727
|
|
|
2,681
|
|
|
8,426
|
|
|
477
|
|
|
41,876
|
|
|||||||
Exploration
|
1,010
|
|
|
90
|
|
|
481
|
|
|
—
|
|
|
61
|
|
|
2,072
|
|
|
3,714
|
|
|||||||
Other operating expenses
|
702
|
|
|
962
|
|
|
271
|
|
|
664
|
|
|
241
|
|
|
11,068
|
|
|
13,908
|
|
|||||||
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Fair value adjustments, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,120
|
|
|
9,120
|
|
|||||||
Interest expense, net
|
(136
|
)
|
|
(142
|
)
|
|
(229
|
)
|
|
(21
|
)
|
|
(197
|
)
|
|
(5,729
|
)
|
|
(6,454
|
)
|
|||||||
Other, net
|
(1,040
|
)
|
|
(27
|
)
|
|
13
|
|
|
86
|
|
|
(188
|
)
|
|
1,216
|
|
|
60
|
|
|||||||
Income and mining tax (expense) benefit
|
1,291
|
|
|
144
|
|
|
—
|
|
|
(173
|
)
|
|
9,751
|
|
|
(2,355
|
)
|
|
8,658
|
|
|||||||
Income (loss) from continuing operations
|
$
|
3,856
|
|
|
$
|
(1,198
|
)
|
|
$
|
(4,584
|
)
|
|
$
|
3,197
|
|
|
$
|
(14,800
|
)
|
|
$
|
(11,365
|
)
|
|
$
|
(24,894
|
)
|
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
5,693
|
|
|
$
|
5,693
|
|
|
Segment assets(2)
|
$
|
360,734
|
|
|
$
|
271,403
|
|
|
$
|
221,164
|
|
|
$
|
103,579
|
|
|
417,089
|
|
|
$
|
174,430
|
|
|
$
|
1,548,399
|
|
|
Capital expenditures
|
$
|
8,676
|
|
|
$
|
4,645
|
|
|
$
|
9,356
|
|
|
$
|
431
|
|
|
4,077
|
|
|
$
|
253
|
|
|
$
|
27,438
|
|
Assets
|
March 31, 2020
|
|
December 31, 2019
|
||||
Total assets for reportable segments
|
$
|
1,203,594
|
|
|
$
|
1,215,783
|
|
Cash and cash equivalents
|
52,895
|
|
|
55,645
|
|
||
Other assets
|
92,608
|
|
|
107,208
|
|
||
Total consolidated assets
|
$
|
1,349,097
|
|
|
$
|
1,378,636
|
|
Long-Lived Assets
|
March 31, 2020
|
|
December 31, 2019
|
||||
United States
|
$
|
486,989
|
|
|
$
|
494,286
|
|
Mexico
|
306,651
|
|
|
312,168
|
|
||
Canada
|
147,828
|
|
|
146,804
|
|
||
Other
|
3,510
|
|
|
7,486
|
|
||
Total
|
$
|
944,978
|
|
|
$
|
960,744
|
|
In thousands
|
March 31, 2020
|
|
December 31, 2019
|
||||
Current receivables:
|
|
|
|
||||
Trade receivables
|
$
|
6,607
|
|
|
$
|
6,028
|
|
Value added tax (“VAT”) receivable
|
11,354
|
|
|
10,729
|
|
||
Income tax receivable
|
116
|
|
|
105
|
|
||
Other
|
1,645
|
|
|
1,804
|
|
||
|
$
|
19,722
|
|
|
$
|
18,666
|
|
Non-current receivables:
|
|
|
|
||||
VAT receivable(1)
|
$
|
22,449
|
|
|
$
|
28,009
|
|
RMC receivable(2)
|
700
|
|
|
700
|
|
||
|
23,149
|
|
|
28,709
|
|
||
Total receivables
|
$
|
42,871
|
|
|
$
|
47,375
|
|
In thousands
|
March 31, 2020
|
|
December 31, 2019
|
||||
Inventory:
|
|
|
|
||||
Concentrate
|
2,227
|
|
|
$
|
10,772
|
|
|
Precious metals
|
13,330
|
|
|
20,761
|
|
||
Supplies
|
36,300
|
|
|
24,353
|
|
||
|
51,857
|
|
|
55,886
|
|
||
Ore on leach pads:
|
|
|
|
||||
Current
|
83,035
|
|
|
66,192
|
|
||
Non-current
|
66,703
|
|
|
71,539
|
|
||
|
149,738
|
|
|
137,731
|
|
||
Total inventory and ore on leach pads
|
$
|
201,595
|
|
|
$
|
193,617
|
|
|
At March 31, 2020
|
||||||||||||||
In thousands
|
Cost
|
|
Gross
Unrealized
Losses
|
|
Gross
Unrealized
Gains
|
|
Estimated
Fair Value
|
||||||||
Equity Securities
|
|
|
|
|
|
|
|
||||||||
Metalla Royalty & Streaming Ltd.
|
$
|
10,463
|
|
|
$
|
—
|
|
|
$
|
11,546
|
|
|
$
|
22,009
|
|
Integra Resources Corp.
|
5,000
|
|
|
(1,463
|
)
|
|
—
|
|
|
3,537
|
|
||||
Rockhaven Resources Ltd.
|
2,064
|
|
|
(1,101
|
)
|
|
—
|
|
|
963
|
|
||||
Other
|
1,304
|
|
|
(987
|
)
|
|
—
|
|
|
317
|
|
||||
Equity securities
|
$
|
18,831
|
|
|
$
|
(3,551
|
)
|
|
$
|
11,546
|
|
|
$
|
26,826
|
|
|
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
|
|
|
(889
|
)
|
|
—
|
|
|
415
|
|
||||
Equity securities
|
$
|
18,831
|
|
|
$
|
(1,265
|
)
|
|
$
|
18,080
|
|
|
$
|
35,646
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
Lease Cost
|
|
|
|
||||
Operating lease cost
|
$
|
2,897
|
|
|
$
|
3,449
|
|
|
|
|
|
||||
Short-term operating lease cost
|
$
|
1,667
|
|
|
$
|
2,751
|
|
|
|
|
|
||||
Finance Lease Cost:
|
|
|
|
||||
Amortization of leased assets
|
$
|
5,973
|
|
|
$
|
2,968
|
|
Interest on lease liabilities
|
1,005
|
|
|
1,107
|
|
||
Total finance lease cost
|
$
|
6,978
|
|
|
$
|
4,075
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
Other Information
|
|
|
|
||||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
|
||||
Operating cash flows from operating leases
|
$
|
4,871
|
|
|
$
|
6,200
|
|
Operating cash flows from finance leases
|
$
|
1,005
|
|
|
$
|
1,107
|
|
Financing cash flows from finance leases
|
$
|
5,901
|
|
|
$
|
7,356
|
|
In thousands
|
March 31, 2020
|
|
December 31, 2019
|
||||
Operating Leases
|
|
|
|
||||
Other assets, non-current
|
$
|
44,436
|
|
|
$
|
49,169
|
|
|
|
|
|
||||
Accrued liabilities and other
|
$
|
12,198
|
|
|
$
|
13,104
|
|
Other long-term liabilities
|
32,448
|
|
|
40,634
|
|
||
Total operating lease liabilities
|
$
|
44,646
|
|
|
$
|
53,738
|
|
|
|
|
|
||||
Finance Leases
|
|
|
|
||||
Property and equipment, gross
|
$
|
102,768
|
|
|
$
|
103,903
|
|
Accumulated depreciation
|
(43,734
|
)
|
|
(42,209
|
)
|
||
Property and equipment, net
|
$
|
59,034
|
|
|
$
|
61,694
|
|
|
|
|
|
||||
Debt, current
|
$
|
23,588
|
|
|
$
|
22,746
|
|
Debt, non-current
|
42,459
|
|
|
45,866
|
|
||
Total finance lease liabilities
|
$
|
66,047
|
|
|
$
|
68,612
|
|
|
|
|
|
||||
Weighted Average Remaining Lease Term
|
|
|
|
||||
Weighted-average remaining lease term - finance leases
|
1.63
|
|
|
1.73
|
|
||
Weighted-average remaining lease term - operating leases
|
4.47
|
|
|
4.70
|
|
||
|
|
|
|
||||
Weighted Average Discount Rate
|
|
|
|
||||
Weighted-average discount rate - finance leases
|
5.35
|
%
|
|
5.40
|
%
|
||
Weighted-average discount rate - operating leases
|
5.19
|
%
|
|
5.20
|
%
|
At March 31, (In thousands)
|
|
|
||||
|
Operating leases
|
Finance leases
|
||||
2020
|
$
|
9,524
|
|
$
|
19,938
|
|
2021
|
11,119
|
|
25,412
|
|
||
2022
|
10,684
|
|
18,779
|
|
||
2023
|
10,205
|
|
6,817
|
|
||
2024
|
8,605
|
|
1,690
|
|
||
Thereafter
|
—
|
|
145
|
|
||
Total
|
$
|
50,137
|
|
$
|
72,781
|
|
Less: imputed interest
|
(5,491
|
)
|
(6,734
|
)
|
||
Net lease obligation
|
$
|
44,646
|
|
$
|
66,047
|
|
|
March 31, 2020
|
|
December 31, 2019
|
||||||||||||
In thousands
|
Current
|
|
Non-Current
|
|
Current
|
|
Non-Current
|
||||||||
2024 Senior Notes, net(1)
|
$
|
—
|
|
|
$
|
227,062
|
|
|
$
|
—
|
|
|
$
|
226,885
|
|
Revolving Credit Facility(2)
|
—
|
|
|
50,000
|
|
|
—
|
|
|
—
|
|
||||
Finance lease obligations
|
23,588
|
|
|
42,459
|
|
|
22,746
|
|
|
45,866
|
|
||||
|
$
|
23,588
|
|
|
$
|
319,521
|
|
|
$
|
22,746
|
|
|
$
|
272,751
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
2024 Senior Notes
|
$
|
3,378
|
|
|
$
|
3,673
|
|
Revolving Credit Facility
|
549
|
|
|
1,853
|
|
||
Finance lease obligations
|
1,005
|
|
|
1,107
|
|
||
Amortization of debt issuance costs
|
381
|
|
|
342
|
|
||
Accretion of Silvertip contingent consideration
|
—
|
|
|
179
|
|
||
Other debt obligations
|
35
|
|
|
—
|
|
||
Capitalized interest
|
(220
|
)
|
|
(700
|
)
|
||
Total interest expense, net of capitalized interest
|
$
|
5,128
|
|
|
$
|
6,454
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
Asset retirement obligation - Beginning
|
$
|
134,543
|
|
|
$
|
133,508
|
|
Accretion
|
2,804
|
|
|
2,895
|
|
||
Settlements
|
(719
|
)
|
|
(662
|
)
|
||
Asset retirement obligation - Ending
|
$
|
136,628
|
|
|
$
|
135,741
|
|
|
Three months ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
||||||||||
In thousands
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
||||||||
United States
|
$
|
(11,005
|
)
|
$
|
(736
|
)
|
|
$
|
(6,047
|
)
|
$
|
(2,162
|
)
|
Canada
|
(26,029
|
)
|
15
|
|
|
(26,525
|
)
|
9,792
|
|
||||
Mexico
|
21,359
|
|
4,631
|
|
|
(772
|
)
|
1,024
|
|
||||
Other jurisdictions
|
(164
|
)
|
29
|
|
|
(208
|
)
|
4
|
|
||||
|
$
|
(15,839
|
)
|
$
|
3,939
|
|
|
$
|
(33,552
|
)
|
$
|
8,658
|
|
Grant date
|
|
Restricted
stock
|
|
Grant date fair
value of
restricted stock
|
|
Performance
shares
|
|
Grant date fair
value of
performance
shares
|
||||||
February 24, 2020
|
|
1,322,341
|
|
|
$
|
5.12
|
|
|
—
|
|
|
$
|
—
|
|
February 25, 2020
|
|
120,491
|
|
|
$
|
4.94
|
|
|
—
|
|
|
$
|
—
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
Unrealized gain (loss) on equity securities
|
$
|
(8,819
|
)
|
|
$
|
9,185
|
|
Realized gain (loss) on equity securities
|
—
|
|
|
(8
|
)
|
||
Interest rate swap, net
|
—
|
|
|
(57
|
)
|
||
Fair value adjustments, net
|
$
|
(8,819
|
)
|
|
$
|
9,120
|
|
|
Fair Value at March 31, 2020
|
||||||||||||||
In thousands
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Equity securities
|
$
|
26,826
|
|
|
$
|
26,826
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Other derivative instruments, net
|
1,023
|
|
|
—
|
|
|
1,023
|
|
|
—
|
|
||||
|
$
|
27,849
|
|
|
$
|
26,826
|
|
|
$
|
1,023
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Other derivative instruments, net
|
$
|
46
|
|
|
$
|
—
|
|
|
$
|
46
|
|
|
$
|
—
|
|
|
Fair Value at December 31, 2019
|
||||||||||||||
In thousands
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Equity and debt 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
|
|
|
Three Months Ended March 31,
|
||||||||||||||||||
In thousands
|
Balance at the beginning of the period
|
|
Revaluation
|
|
Settlements
|
|
Accretion
|
|
Balance at the
end of the period |
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Silvertip contingent consideration
|
$
|
25,000
|
|
|
$
|
—
|
|
|
$
|
(25,000
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
March 31, 2020
|
||||||||||||||||||
In thousands
|
Book Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
2024 Senior Notes(1)
|
$
|
227,062
|
|
|
$
|
202,433
|
|
|
$
|
—
|
|
|
$
|
202,433
|
|
|
$
|
—
|
|
Revolving Credit Facility(2)
|
$
|
50,000
|
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
$
|
50,000
|
|
|
$
|
—
|
|
|
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)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
In thousands except average prices and notional ounces
|
2020
|
|
Thereafter
|
||||
Provisional silver sales contracts
|
$
|
4,500
|
|
|
$
|
—
|
|
Average silver price per ounce
|
$
|
14.86
|
|
|
$
|
—
|
|
Notional ounces
|
302,871
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional gold sales contracts
|
$
|
8,346
|
|
|
$
|
—
|
|
Average gold price per ounce
|
$
|
1,596
|
|
|
$
|
—
|
|
Notional ounces
|
5,230
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional zinc sales contracts
|
$
|
11,769
|
|
|
$
|
—
|
|
Average zinc price per pound
|
$
|
0.86
|
|
|
$
|
—
|
|
Notional pounds
|
13,615,188
|
|
|
—
|
|
||
|
|
|
|
||||
Provisional lead sales contracts
|
$
|
3,028
|
|
|
$
|
—
|
|
Average lead price per pound
|
$
|
0.79
|
|
|
$
|
—
|
|
Notional pounds
|
3,830,017
|
|
|
—
|
|
|
March 31, 2020
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Provisional metal sales contracts
|
$
|
1,023
|
|
|
$
|
46
|
|
|
December 31, 2019
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Provisional metal sales contracts
|
$
|
753
|
|
|
$
|
275
|
|
|
|
Three Months Ended March 31,
|
||||||
Financial statement line
|
Derivative
|
2020
|
|
2019
|
||||
Revenue
|
Provisional metal sales contracts
|
$
|
500
|
|
|
$
|
250
|
|
Fair value adjustments, net
|
Interest rate swaps
|
—
|
|
|
(46
|
)
|
||
|
|
$
|
500
|
|
|
$
|
204
|
|
In thousands except average prices and notional ounces
|
2020
|
2021
|
||||
Gold put options
|
|
|
||||
Average gold strike price per ounce
|
$
|
1,447
|
|
$
|
1,600
|
|
Notional ounces
|
153,000
|
|
12,000
|
|
||
|
|
|
||||
Gold call options
|
|
|
||||
Average gold strike price per ounce
|
$
|
1,826
|
|
$
|
1,800
|
|
Notional ounces
|
153,000
|
|
12,000
|
|
||
|
|
|
||||
Foreign currency forward exchange contracts - Mexican Peso
|
|
|
||||
Average Mexican Peso exchange rate
|
24.09
|
|
25.00
|
|
||
Notional US dollar
|
$
|
45,000
|
|
$
|
60,000
|
|
|
|
|
||||
Foreign exchange forward exchange contracts - Canadian Dollar
|
|
|
||||
Average Canadian Dollar exchange rate
|
1.44
|
|
—
|
|
||
Notional US dollar
|
$
|
25,000
|
|
$
|
—
|
|
|
March 31, 2020
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Gold zero cost collars
|
$
|
27
|
|
|
$
|
—
|
|
Foreign currency forward exchange contracts
|
65
|
|
|
—
|
|
||
|
$
|
92
|
|
|
$
|
—
|
|
|
December 31, 2019
|
||||||
In thousands
|
Prepaid expenses and other
|
|
Accrued liabilities and other
|
||||
Gold zero cost collars
|
$
|
—
|
|
|
$
|
136
|
|
In thousands
|
December 31, 2019
|
|
Amount of Gain (Loss) Recognized in Other Comprehensive Income
|
|
Less: Amount of Gain (Loss) Reclassified From AOCI to Earnings
|
|
March 31, 2020
|
||||||
Gold zero cost collars
|
$
|
(136
|
)
|
|
163
|
|
|
—
|
|
|
$
|
27
|
|
Foreign currency forward exchange contracts
|
$
|
—
|
|
|
65
|
|
|
—
|
|
|
$
|
65
|
|
Derivative contracts designated as cash flow hedges
|
$
|
(136
|
)
|
|
228
|
|
|
—
|
|
|
$
|
92
|
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
Foreign exchange gain (loss)
|
$
|
(76
|
)
|
|
$
|
(665
|
)
|
Gain (loss) on sale of assets and investments
|
9
|
|
|
52
|
|
||
Gain (loss) on sale of Manquiri NSR consideration(1)
|
365
|
|
|
—
|
|
||
Gain (loss) on Silvertip contingent consideration
|
955
|
|
|
—
|
|
||
Interest income on notes receivable
|
—
|
|
|
180
|
|
||
Other
|
628
|
|
|
493
|
|
||
Other, net
|
$
|
1,881
|
|
|
$
|
60
|
|
|
Three months ended March 31,
|
||||||
In thousands except per share amounts
|
2020
|
|
2019
|
||||
Net income (loss) available to common stockholders:
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
(11,900
|
)
|
|
$
|
(24,894
|
)
|
Income (loss) from discontinued operations
|
—
|
|
|
5,693
|
|
||
|
$
|
(11,900
|
)
|
|
$
|
(19,201
|
)
|
|
|
|
|
||||
Weighted average shares:
|
|
|
|
||||
Basic
|
240,255
|
|
|
202,422
|
|
||
Effect of stock-based compensation plans
|
—
|
|
|
—
|
|
||
Diluted
|
240,255
|
|
|
202,422
|
|
||
|
|
|
|
||||
Basic income (loss) per share:
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
(0.05
|
)
|
|
$
|
(0.12
|
)
|
Income (loss) from discontinued operations
|
0.00
|
|
|
0.03
|
|
||
Basic(1)
|
$
|
(0.05
|
)
|
|
$
|
(0.09
|
)
|
|
|
|
|
||||
Diluted income (loss) per share:
|
|
|
|
||||
Income (loss) from continuing operations
|
$
|
(0.05
|
)
|
|
$
|
(0.12
|
)
|
Income (loss) from discontinued operations
|
0.00
|
|
|
0.03
|
|
||
Diluted(1)
|
$
|
(0.05
|
)
|
|
$
|
(0.09
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
96,944
|
|
|
$
|
76,223
|
|
|
$
|
—
|
|
|
$
|
173,167
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales(1)
|
—
|
|
|
65,286
|
|
|
53,631
|
|
|
—
|
|
|
118,917
|
|
|||||
Amortization
|
215
|
|
|
17,415
|
|
|
18,532
|
|
|
—
|
|
|
36,162
|
|
|||||
General and administrative
|
8,910
|
|
|
2
|
|
|
8
|
|
|
—
|
|
|
8,920
|
|
|||||
Exploration
|
280
|
|
|
4,363
|
|
|
1,743
|
|
|
—
|
|
|
6,386
|
|
|||||
Pre-development, reclamation, and other
|
18
|
|
|
2,616
|
|
|
3,921
|
|
|
—
|
|
|
6,555
|
|
|||||
Total costs and expenses
|
9,423
|
|
|
89,682
|
|
|
77,835
|
|
|
—
|
|
|
176,940
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value adjustments, net
|
(8,819
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,819
|
)
|
|||||
Other, net
|
4,615
|
|
|
(9
|
)
|
|
1,002
|
|
|
(3,727
|
)
|
|
1,881
|
|
|||||
Interest expense, net of capitalized interest
|
(4,105
|
)
|
|
(736
|
)
|
|
(4,014
|
)
|
|
3,727
|
|
|
(5,128
|
)
|
|||||
Total other income (expense), net
|
(8,309
|
)
|
|
(745
|
)
|
|
(3,012
|
)
|
|
—
|
|
|
(12,066
|
)
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(17,732
|
)
|
|
6,517
|
|
|
(4,624
|
)
|
|
—
|
|
|
(15,839
|
)
|
|||||
Income and mining tax (expense) benefit
|
(218
|
)
|
|
(518
|
)
|
|
4,675
|
|
|
—
|
|
|
3,939
|
|
|||||
Income (loss) from continuing operations
|
(17,950
|
)
|
|
5,999
|
|
|
51
|
|
|
—
|
|
|
(11,900
|
)
|
|||||
Equity income (loss) in consolidated subsidiaries
|
6,050
|
|
|
(3,157
|
)
|
|
3,027
|
|
|
(5,920
|
)
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
NET INCOME (LOSS)
|
$
|
(11,900
|
)
|
|
$
|
2,842
|
|
|
$
|
3,078
|
|
|
$
|
(5,920
|
)
|
|
$
|
(11,900
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on debt and equity securities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Unrealized gain (loss) on cash flow hedges, net of tax of $22 for the three months ended March 31, 2020
|
206
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
206
|
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
(11,694
|
)
|
|
$
|
2,842
|
|
|
$
|
3,078
|
|
|
$
|
(5,920
|
)
|
|
$
|
(11,694
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
90,699
|
|
|
$
|
64,171
|
|
|
$
|
—
|
|
|
$
|
154,870
|
|
COSTS AND EXPENSES
|
|
|
|
|
|
|
|
|
|
||||||||||
Costs applicable to sales(1)
|
—
|
|
|
72,022
|
|
|
59,628
|
|
|
—
|
|
|
131,650
|
|
|||||
Amortization
|
221
|
|
|
18,445
|
|
|
23,210
|
|
|
—
|
|
|
41,876
|
|
|||||
General and administrative
|
9,474
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,474
|
|
|||||
Exploration
|
336
|
|
|
1,124
|
|
|
2,254
|
|
|
—
|
|
|
3,714
|
|
|||||
Pre-development, reclamation, and other
|
160
|
|
|
1,943
|
|
|
2,331
|
|
|
—
|
|
|
4,434
|
|
|||||
Total costs and expenses
|
10,191
|
|
|
93,534
|
|
|
87,423
|
|
|
—
|
|
|
191,148
|
|
|||||
OTHER INCOME (EXPENSE), NET
|
|
|
|
|
|
|
|
|
|
||||||||||
Fair value adjustments, net
|
9,120
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,120
|
|
|||||
Other, net
|
4,998
|
|
|
165
|
|
|
(800
|
)
|
|
(4,303
|
)
|
|
60
|
|
|||||
Interest expense, net of capitalized interest
|
(5,729
|
)
|
|
(392
|
)
|
|
(4,636
|
)
|
|
4,303
|
|
|
(6,454
|
)
|
|||||
Total other income (expense), net
|
8,389
|
|
|
(227
|
)
|
|
(5,436
|
)
|
|
—
|
|
|
2,726
|
|
|||||
Income (loss) from continuing operations before income and mining taxes
|
(1,802
|
)
|
|
(3,062
|
)
|
|
(28,688
|
)
|
|
—
|
|
|
(33,552
|
)
|
|||||
Income and mining tax (expense) benefit
|
(2,077
|
)
|
|
(32
|
)
|
|
10,767
|
|
|
—
|
|
|
8,658
|
|
|||||
Income (loss) from continuing operations
|
(3,879
|
)
|
|
(3,094
|
)
|
|
(17,921
|
)
|
|
—
|
|
|
(24,894
|
)
|
|||||
Equity income (loss) in consolidated subsidiaries
|
(21,015
|
)
|
|
(418
|
)
|
|
283
|
|
|
21,150
|
|
|
—
|
|
|||||
Income (loss) from discontinued operations
|
5,693
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,693
|
|
|||||
NET INCOME (LOSS)
|
$
|
(19,201
|
)
|
|
$
|
(3,512
|
)
|
|
$
|
(17,638
|
)
|
|
$
|
21,150
|
|
|
$
|
(19,201
|
)
|
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized gain (loss) on debt securities, net of tax
|
59
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59
|
|
|||||
COMPREHENSIVE INCOME (LOSS)
|
$
|
(19,142
|
)
|
|
$
|
(3,512
|
)
|
|
$
|
(17,638
|
)
|
|
$
|
21,150
|
|
|
$
|
(19,142
|
)
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
$
|
(3,457
|
)
|
|
$
|
2,231
|
|
|
$
|
(845
|
)
|
|
$
|
(5,920
|
)
|
|
$
|
(7,991
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(21
|
)
|
|
(10,491
|
)
|
|
(11,696
|
)
|
|
—
|
|
|
(22,208
|
)
|
|||||
Proceeds from the sale of assets
|
4,500
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
4,506
|
|
|||||
Other
|
—
|
|
|
—
|
|
|
(17
|
)
|
|
—
|
|
|
(17
|
)
|
|||||
Investments in consolidated subsidiaries
|
(6,050
|
)
|
|
(39
|
)
|
|
169
|
|
|
5,920
|
|
|
—
|
|
|||||
Cash provided by (used in) activities of continuing operations
|
(1,571
|
)
|
|
(10,524
|
)
|
|
(11,544
|
)
|
|
5,920
|
|
|
(17,719
|
)
|
|||||
Cash provided by (used in) activities of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
(1,571
|
)
|
|
(10,524
|
)
|
|
(11,544
|
)
|
|
5,920
|
|
|
(17,719
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of notes and bank borrowings, net of issuance costs
|
50,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50,000
|
|
|||||
Payments on debt, capital leases, and associated costs
|
—
|
|
|
(3,975
|
)
|
|
(1,926
|
)
|
|
—
|
|
|
(5,901
|
)
|
|||||
Silvertip contingent consideration
|
—
|
|
|
—
|
|
|
(18,750
|
)
|
|
—
|
|
|
(18,750
|
)
|
|||||
Net intercompany financing activity
|
(38,600
|
)
|
|
1,857
|
|
|
36,743
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
(1,973
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,973
|
)
|
|||||
Cash provided by (used in) activities of continuing operations
|
9,427
|
|
|
(2,118
|
)
|
|
16,067
|
|
|
—
|
|
|
23,376
|
|
|||||
Cash provided by (used in) activities of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
9,427
|
|
|
(2,118
|
)
|
|
16,067
|
|
|
—
|
|
|
23,376
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
(27
|
)
|
|
(599
|
)
|
|
—
|
|
|
(626
|
)
|
|||||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
4,399
|
|
|
(10,438
|
)
|
|
3,079
|
|
|
—
|
|
|
(2,960
|
)
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
6,675
|
|
|
27,238
|
|
|
23,105
|
|
|
—
|
|
|
57,018
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
11,074
|
|
|
$
|
16,800
|
|
|
$
|
26,184
|
|
|
$
|
—
|
|
|
$
|
54,058
|
|
In thousands
|
Coeur Mining, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
(34,395
|
)
|
|
8,468
|
|
|
(11,069
|
)
|
|
21,150
|
|
|
(15,846
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital expenditures
|
(38
|
)
|
|
(14,431
|
)
|
|
(12,969
|
)
|
|
—
|
|
|
(27,438
|
)
|
|||||
Proceeds from the sale of assets
|
—
|
|
|
753
|
|
|
94
|
|
|
—
|
|
|
847
|
|
|||||
Sales of investments
|
5,168
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,168
|
|
|||||
Other
|
1,803
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
|
1,741
|
|
|||||
Investments in consolidated subsidiaries
|
21,015
|
|
|
—
|
|
|
135
|
|
|
(21,150
|
)
|
|
—
|
|
|||||
Cash provided by (used in) activities of continuing operations
|
23,948
|
|
|
(13,678
|
)
|
|
(12,802
|
)
|
|
(21,150
|
)
|
|
(19,682
|
)
|
|||||
Cash provided by (used in) activities of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
23,948
|
|
|
(13,678
|
)
|
|
(12,802
|
)
|
|
(21,150
|
)
|
|
(19,682
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Issuance of notes and bank borrowings, net of issuance costs
|
15,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,000
|
|
|||||
Payments on debt, capital leases, and associated costs
|
(15,000
|
)
|
|
(4,387
|
)
|
|
(2,969
|
)
|
|
—
|
|
|
(22,356
|
)
|
|||||
Net intercompany financing activity
|
10,226
|
|
|
(5,357
|
)
|
|
(4,869
|
)
|
|
—
|
|
|
—
|
|
|||||
Other
|
(3,364
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,364
|
)
|
|||||
Cash provided by (used in) activities of continuing operations
|
6,862
|
|
|
(9,744
|
)
|
|
(7,838
|
)
|
|
—
|
|
|
(10,720
|
)
|
|||||
Cash provided by (used in) activities of discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
6,862
|
|
|
(9,744
|
)
|
|
(7,838
|
)
|
|
—
|
|
|
(10,720
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
3
|
|
|
198
|
|
|
—
|
|
|
201
|
|
|||||
NET CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
415
|
|
|
(14,951
|
)
|
|
(31,511
|
)
|
|
—
|
|
|
(46,047
|
)
|
|||||
Cash, cash equivalents and restricted cash at beginning of period
|
12,747
|
|
|
25,532
|
|
|
79,790
|
|
|
—
|
|
|
118,069
|
|
|||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
13,162
|
|
|
$
|
10,581
|
|
|
$
|
48,279
|
|
|
$
|
—
|
|
|
$
|
72,022
|
|
In thousands
|
March 31, 2020
|
|
December 31, 2019
|
||||
Accrued salaries and wages
|
$
|
14,567
|
|
|
$
|
20,047
|
|
Silvertip contingent consideration
|
—
|
|
|
25,000
|
|
||
Deferred revenue (1)
|
9,909
|
|
|
16,672
|
|
||
Income and mining taxes
|
1,908
|
|
|
11,243
|
|
||
Accrued operating costs
|
3,395
|
|
|
4,163
|
|
||
Taxes other than income and mining
|
2,692
|
|
|
3,554
|
|
||
Accrued interest payable
|
5,266
|
|
|
1,833
|
|
||
Operating lease liabilities
|
12,198
|
|
|
13,104
|
|
||
Accrued liabilities and other
|
$
|
49,935
|
|
|
$
|
95,616
|
|
In thousands
|
March 31, 2020
|
|
March 31, 2019
|
||||
Cash and cash equivalents
|
$
|
52,895
|
|
|
$
|
69,033
|
|
Restricted cash equivalents
|
1,163
|
|
|
2,989
|
|
||
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
$
|
54,058
|
|
|
$
|
72,022
|
|
•
|
Proactive response to managing impacts of global COVID-19 pandemic - As part of Coeur’s corporate crisis management process, a special advisory committee was established in early March to evaluate and address ongoing concerns, risks and challenges associated with the 2019 novel coronavirus (“COVID-19”). Primary objectives of the committee remain (i) protecting the health of Coeur’s workforce and communities, and (ii) ensuring continuity of the Company’s operations to the extent possible
|
•
|
Financial results reflective of key elements of Company strategy - Gold sales represented a record high 74% of quarterly revenue, while Coeur’s three U.S. operations – all of which continue to operate – comprised 56% of quarterly revenue
|
•
|
Strong operational and financial performance at Palmarejo - Palmarejo was the Company’s top performing operation, driven by a 10% quarter over quarter increase in gold production. The operation generated $28.9 million in operating cash flow. Strong operational performance helped to generate $21.8 million of free cash flow1 during the first quarter
|
•
|
Improved crusher performance and major permitting milestone achieved at Rochester - Coeur processed 37,677 tons per day (“tpd”) through the upgraded crusher configuration at Rochester during the first quarter, exceeding its target by 11% and was 33% higher than the prior quarter. The Company also received the Record of Decision from the Bureau of Land Management for Plan of Operations Amendment 11 (“POA 11”), marking a significant achievement toward the planned expansion at Rochester
|
•
|
Advancing exploration efforts across portfolio - Coeur began its largest exploration program in Company history, drilling roughly 20% more footage than the prior period and nearly 60% more than the first quarter of 2019. The increased exploration activity was primarily related to the expanded drilling program underway at Palmarejo and the ramp up in drilling at the Sterling and Crown deposits in southern Nevada. Expanded drilling programs at Kensington and Silvertip also commenced during the quarter
|
•
|
Safe transition and advancing work on pre-feasibility study at Silvertip - The Company safely ramped down Silvertip, completing the transition to a temporary suspension of mining and processing activities announced in February. Zinc and lead markets continued to face significant headwinds during the first quarter, further validating Coeur’s decision to temporarily suspend active mining and processing activities. Work on the pre-feasibility study to evaluate a mill expansion is advancing
|
•
|
Additional execution of opportunistic hedging - The Company continued to add to its zero-cost collar (“ZCC”) gold hedging program during the quarter, with a total of 153,000 and 99,000 ounces now hedged through the remainder of 2020 and in 2021, respectively. Coeur also capitalized on multi-year low exchange rates for the Mexican Peso and Canadian Dollar by securing rate protection on a portion of its foreign currency-denominated expenses over the next two years. The increased hedging activity is being implemented to provide downside protection in preparation for the POA 11 expansion at Rochester, which is expected to be funded with a combination of internally generated cash flow and its senior secured revolving credit facility (the “RCF”)
|
•
|
Bolstered cash balance to enhance financial flexibility - As of March 31, 2020, Coeur had $52.9 million of cash and cash equivalents. As a precautionary measure, the Company further bolstered its cash position by drawing down an additional $100.0 million from its RCF shortly after the end of the quarter in response to potential impacts of COVID-19, bringing the total amount drawn to $150.0 million
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
Financial Results from Continuing Operations:
|
|
|
|
||||
Gold sales
|
$
|
127,605
|
|
|
$
|
106,764
|
|
Silver sales
|
$
|
44,909
|
|
|
$
|
40,114
|
|
Zinc sales
|
$
|
(662
|
)
|
|
$
|
5,634
|
|
Lead sales
|
$
|
1,315
|
|
|
$
|
2,358
|
|
Consolidated Revenue
|
$
|
173,167
|
|
|
$
|
154,870
|
|
Net income (loss)
|
$
|
(11,900
|
)
|
|
$
|
(24,894
|
)
|
Net income (loss) per share, diluted
|
$
|
(0.05
|
)
|
|
$
|
(0.12
|
)
|
Adjusted net income (loss)(1)
|
$
|
(769
|
)
|
|
$
|
(22,958
|
)
|
Adjusted net income (loss) per share, diluted(1)
|
$
|
0.00
|
|
|
$
|
(0.11
|
)
|
EBITDA(1)
|
$
|
25,451
|
|
|
$
|
14,778
|
|
Adjusted EBITDA(1)
|
$
|
46,601
|
|
|
$
|
26,104
|
|
Total debt(2)
|
$
|
343,109
|
|
|
$
|
456,789
|
|
Operating Results from Continuing Operations:
|
|
|
|
||||
Gold ounces produced
|
85,077
|
|
|
78,336
|
|
||
Silver ounces produced
|
2,676,418
|
|
|
2,490,434
|
|
||
Zinc pounds produced
|
2,459,756
|
|
|
3,719,013
|
|
||
Lead pounds produced
|
2,176,847
|
|
|
3,076,845
|
|
||
Gold ounces sold
|
85,635
|
|
|
85,326
|
|
||
Silver ounces sold
|
2,700,778
|
|
|
2,635,015
|
|
||
Zinc pounds sold
|
3,203,446
|
|
|
4,723,069
|
|
||
Lead pounds sold
|
2,453,485
|
|
|
2,747,847
|
|
||
Average realized price per gold ounce
|
$
|
1,490
|
|
|
$
|
1,251
|
|
Average realized price per silver ounce
|
$
|
16.63
|
|
|
$
|
15.22
|
|
Average realized price per zinc pound, gross
|
$
|
(0.21
|
)
|
|
$
|
1.50
|
|
Average realized price per lead pound, gross
|
$
|
0.54
|
|
|
$
|
0.92
|
|
Financial and Operating Results from Discontinued Operations:
|
|
|
|
||||
Income (loss) from discontinued operations
|
$
|
—
|
|
|
$
|
5,693
|
|
Operation
|
Location
|
Status
|
Commentary
|
Palmarejo
|
Chihuahua, Mexico
|
Temporarily suspended
|
Precious metals mining not considered essential as part of decree issued by the Federal Government of Mexico on March 31, 2020
|
Rochester
|
Nevada, United States
|
Operating
|
Mining considered essential as part of State of Nevada regulations issued on March 20, 2020
|
Kensington
|
Alaska, United States
|
Operating
|
Mining considered essential as part of State of Alaska declaration on March 27, 2020
|
Wharf
|
South Dakota, United States
|
Operating
|
State of South Dakota issued a public order mandating the closure of all public-facing businesses, which does not include Wharf, on March 23, 2020
|
Silvertip
|
British Columbia, Canada
|
Temporarily suspended
|
Previously announced temporary suspension of mining and processing activities (unrelated to COVID-19). No actions required at this time to comply with restrictions issued by the Government of British Columbia
|
•
|
Travel and site access restricted to business-critical needs; discretionary travel strongly discouraged and must be reported
|
•
|
Health and travel questionnaires as well as temperature checks required prior to entering sites
|
•
|
Increased cleaning and disinfecting of common areas
|
•
|
Social distancing, including limiting meetings to ten people (or less)
|
•
|
Extended rotational schedules at certain operations to reduce travel to and from site
|
•
|
All site-level employees who can and all corporate headquarter employees working remotely
|
•
|
Providing ongoing support to local communities, including donations of critical supplies
|
•
|
Partnering with local communities in communication and response efforts
|
|
Three months ended March 31,
|
|
Increase
|
|
Percent
|
|||||||||
In thousands
|
2020
|
|
2019
|
|
(Decrease)
|
|
Change
|
|||||||
Gold sales
|
$
|
127,605
|
|
|
$
|
106,764
|
|
|
$
|
20,841
|
|
|
20
|
%
|
Silver sales
|
44,909
|
|
|
40,114
|
|
|
4,795
|
|
|
12
|
%
|
|||
Zinc sales
|
(662
|
)
|
|
5,634
|
|
|
(6,296
|
)
|
|
(112
|
)%
|
|||
Lead sales
|
1,315
|
|
|
2,358
|
|
|
(1,043
|
)
|
|
(44
|
)%
|
|||
Metal sales
|
$
|
173,167
|
|
|
$
|
154,870
|
|
|
$
|
18,297
|
|
|
12
|
%
|
|
Three months ended March 31,
|
|
Increase
|
|
Percent
|
|||||||||
In thousands
|
2020
|
|
2019
|
|
(Decrease)
|
|
Change
|
|||||||
Silvertip ongoing carrying costs
|
$
|
2,608
|
|
|
$
|
—
|
|
|
$
|
2,608
|
|
|
—
|
%
|
Silvertip one-time temporary suspension costs
|
3,659
|
|
|
—
|
|
|
3,659
|
|
|
—
|
%
|
|||
Gain on modification of right of use lease
|
(4,051
|
)
|
|
—
|
|
|
(4,051
|
)
|
|
—
|
%
|
|||
Asset retirement accretion
|
2,847
|
|
|
2,942
|
|
|
(95
|
)
|
|
(3
|
)%
|
|||
Other
|
1,492
|
|
|
1,492
|
|
|
—
|
|
|
—
|
%
|
|||
Pre-development, reclamation and other expense
|
$
|
6,555
|
|
|
$
|
4,434
|
|
|
$
|
2,121
|
|
|
48
|
%
|
|
Three months ended March 31,
|
||||||||||||
|
2020
|
|
2019
|
||||||||||
In thousands
|
Income (loss) before tax
|
Tax (expense) benefit
|
|
Income (loss) before tax
|
Tax (expense) benefit
|
||||||||
United States
|
$
|
(11,005
|
)
|
$
|
(736
|
)
|
|
$
|
(6,047
|
)
|
$
|
(2,162
|
)
|
Canada
|
(26,029
|
)
|
15
|
|
|
(26,525
|
)
|
9,792
|
|
||||
Mexico
|
21,359
|
|
4,631
|
|
|
(772
|
)
|
1,024
|
|
||||
Other jurisdictions
|
(164
|
)
|
29
|
|
|
(208
|
)
|
4
|
|
||||
|
$
|
(15,839
|
)
|
$
|
3,939
|
|
|
$
|
(33,552
|
)
|
$
|
8,658
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Tons milled
|
479,562
|
|
|
378,987
|
|
||
Average gold grade (oz/t)
|
0.07
|
|
|
0.07
|
|
||
Average silver grade (oz/t)
|
4.69
|
|
|
4.64
|
|
||
Average recovery rate – Au
|
91.6
|
%
|
|
83.4
|
%
|
||
Average recovery rate – Ag
|
81.5
|
%
|
|
72.8
|
%
|
||
Gold ounces produced
|
31,578
|
|
|
23,205
|
|
||
Silver ounces produced
|
1,834,891
|
|
|
1,278,283
|
|
||
Gold ounces sold
|
31,287
|
|
|
27,394
|
|
||
Silver ounces sold
|
1,894,789
|
|
|
1,405,409
|
|
||
Costs applicable to sales per gold ounce(1)
|
$
|
644
|
|
|
$
|
716
|
|
Costs applicable to sales per silver ounce(1)
|
$
|
8.35
|
|
|
$
|
9.70
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Tons placed
|
3,428,578
|
|
|
2,667,559
|
|
||
Average gold grade (oz/t)
|
0.002
|
|
|
0.003
|
|
||
Average silver grade (oz/t)
|
0.57
|
|
|
0.46
|
|
||
Gold ounces produced
|
5,936
|
|
|
8,256
|
|
||
Silver ounces produced
|
687,379
|
|
|
959,905
|
|
||
Gold ounces sold
|
5,473
|
|
|
8,511
|
|
||
Silver ounces sold
|
632,237
|
|
|
1,000,453
|
|
||
Costs applicable to sales per gold ounce(1)
|
$
|
1,394
|
|
|
$
|
1,108
|
|
Costs applicable to sales per silver ounce(1)
|
$
|
14.75
|
|
|
$
|
13.02
|
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Tons milled
|
162,341
|
|
|
164,332
|
|
||
Average gold grade (oz/t)
|
0.21
|
|
|
0.20
|
|
||
Average recovery rate
|
93.5
|
%
|
|
90.2
|
%
|
||
Gold ounces produced
|
32,022
|
|
|
29,973
|
|
||
Gold ounces sold
|
32,781
|
|
|
31,335
|
|
||
Costs applicable to sales per gold ounce(1)
|
$
|
931
|
|
|
$
|
1,027
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three Months Ended March 31,
|
||||||
|
2020
|
|
2019
|
||||
Tons placed
|
946,449
|
|
|
1,090,510
|
|
||
Average gold grade (oz/t)
|
0.025
|
|
|
0.020
|
|
||
Gold ounces produced
|
15,541
|
|
|
16,902
|
|
||
Silver ounces produced
|
14,861
|
|
|
13,484
|
|
||
Gold ounces sold
|
16,094
|
|
|
18,086
|
|
||
Silver ounces sold
|
14,768
|
|
|
14,052
|
|
||
Costs applicable to sales per gold ounce(1)
|
$
|
1,092
|
|
|
$
|
950
|
|
(1)
|
See Non-GAAP Financial Performance Measures.
|
|
Three Months Ended March 31,
|
|||||
|
2020 (1)
|
|
2019
|
|||
Tons milled
|
29,240
|
|
|
62,051
|
|
|
Average silver grade (oz/t)
|
7.03
|
|
|
5.50
|
|
|
Average zinc grade (%)
|
7.1
|
%
|
|
5.9
|
%
|
|
Average lead grade (%)
|
5.2
|
%
|
|
3.7
|
%
|
|
Average recovery rate – Ag
|
67.7
|
%
|
|
69.9
|
%
|
|
Average recovery rate – Zn
|
59.3
|
%
|
|
50.5
|
%
|
|
Average recovery rate – Pb
|
71.2
|
%
|
|
66.8
|
%
|
|
Silver ounces produced
|
139,287
|
|
|
238,762
|
|
|
Zinc pounds produced
|
2,459,756
|
|
|
3,719,013
|
|
|
Lead pounds produced
|
2,176,847
|
|
|
3,076,845
|
|
|
Silver ounces sold
|
158,984
|
|
|
215,101
|
|
|
Zinc pounds sold
|
3,203,446
|
|
|
4,723,069
|
|
|
Lead pounds sold
|
2,453,485
|
|
|
2,747,847
|
|
|
Costs applicable to sales per silver ounce(2)
|
NM (3)
|
|
|
$
|
33.12
|
|
Costs applicable to sales per zinc pound(2)
|
NM (3)
|
|
|
$
|
2.85
|
|
Costs applicable to sales per lead ounce(2)
|
NM (3)
|
|
|
$
|
2.11
|
|
(1)
|
Operational results in the table above reflect performance prior to the temporary suspension of mining and processing activities in February 2020.
|
(2)
|
See Non-GAAP Financial Performance Measures.
|
(3)
|
Due to the temporary suspension of mining and processing activities these amounts are not meaningful.
|
|
Three Months Ended March 31,
|
||||||
In thousands
|
2020
|
|
2019
|
||||
Cash flow before changes in operating assets and liabilities
|
$
|
30,144
|
|
|
$
|
21,466
|
|
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables
|
(813
|
)
|
|
(9,735
|
)
|
||
Prepaid expenses and other
|
(346
|
)
|
|
(2,684
|
)
|
||
Inventories
|
(21,925
|
)
|
|
(18,821
|
)
|
||
Accounts payable and accrued liabilities
|
(15,051
|
)
|
|
(6,072
|
)
|
||
Cash provided by (used in) continuing operating activities
|
$
|
(7,991
|
)
|
|
$
|
(15,846
|
)
|
|
Three Months Ended March 31,
|
||||||
In thousands except per share amounts
|
2020
|
|
2019
|
||||
Net income (loss)
|
$
|
(11,900
|
)
|
|
$
|
(19,201
|
)
|
(Income) loss from discontinued operations, net of tax
|
—
|
|
|
(5,693
|
)
|
||
Fair value adjustments, net
|
8,819
|
|
|
(9,120
|
)
|
||
Foreign exchange loss (gain)
|
(6,620
|
)
|
|
1,256
|
|
||
(Gain) loss on sale of assets and securities
|
(374
|
)
|
|
(52
|
)
|
||
Silvertip inventory write-down
|
10,381
|
|
|
15,447
|
|
||
Silvertip one-time costs
|
3,659
|
|
|
—
|
|
||
Silvertip lease modification
|
(4,051
|
)
|
|
—
|
|
||
Silvertip gain on contingent consideration
|
(955
|
)
|
|
—
|
|
||
COVID-19 one-time costs
|
272
|
|
|
—
|
|
||
Interest income on notes receivables
|
—
|
|
|
(180
|
)
|
||
Tax effect of adjustments(1)
|
—
|
|
|
(5,415
|
)
|
||
Adjusted net income (loss)
|
$
|
(769
|
)
|
|
$
|
(22,958
|
)
|
|
|
|
|
||||
Adjusted net income (loss) per share - Basic
|
$
|
0.00
|
|
|
$
|
(0.11
|
)
|
Adjusted net income (loss) per share - Diluted
|
$
|
0.00
|
|
|
$
|
(0.11
|
)
|
|
Three Months Ended March 31,
|
||||||
In thousands except per share amounts
|
2020
|
|
2019
|
||||
Net income (loss)
|
$
|
(11,900
|
)
|
|
$
|
(19,201
|
)
|
(Income) loss from discontinued operations, net of tax
|
—
|
|
|
(5,693
|
)
|
||
Interest expense, net of capitalized interest
|
5,128
|
|
|
6,454
|
|
||
Income tax provision (benefit)
|
(3,939
|
)
|
|
(8,658
|
)
|
||
Amortization
|
36,162
|
|
|
41,876
|
|
||
EBITDA
|
25,451
|
|
|
14,778
|
|
||
Fair value adjustments, net
|
8,819
|
|
|
(9,120
|
)
|
||
Foreign exchange (gain) loss
|
76
|
|
|
665
|
|
||
Asset retirement obligation accretion
|
2,847
|
|
|
2,943
|
|
||
Inventory adjustments and write-downs
|
476
|
|
|
1,623
|
|
||
(Gain) loss on sale of assets and securities
|
(374
|
)
|
|
(52
|
)
|
||
Silvertip inventory write-down
|
10,381
|
|
|
15,447
|
|
||
Silvertip one-time costs
|
3,659
|
|
|
—
|
|
||
Silvertip lease modification
|
(4,051
|
)
|
|
—
|
|
||
Silvertip gain on contingent consideration
|
(955
|
)
|
|
—
|
|
||
COVID-19 one-time costs
|
272
|
|
|
—
|
|
||
Interest income on notes receivables
|
—
|
|
|
(180
|
)
|
||
Adjusted EBITDA
|
$
|
46,601
|
|
|
$
|
26,104
|
|
|
Three Months Ended March 31,
|
||||||
(Dollars in thousands)
|
2020
|
|
2019
|
||||
Cash flow from continuing operations
|
$
|
(7,991
|
)
|
|
$
|
(15,846
|
)
|
Capital expenditures from continuing operations
|
22,208
|
|
|
27,438
|
|
||
Free cash flow
|
$
|
(30,199
|
)
|
|
(43,284
|
)
|
In thousands except per ounce or per pound amounts
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Total
|
||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
$
|
49,149
|
|
|
$
|
19,860
|
|
|
$
|
42,429
|
|
|
$
|
20,267
|
|
|
$
|
23,002
|
|
|
$
|
154,707
|
|
Amortization
|
(13,175
|
)
|
|
(2,904
|
)
|
|
(11,922
|
)
|
|
(2,444
|
)
|
|
(5,345
|
)
|
|
(35,790
|
)
|
||||||
Costs applicable to sales
|
$
|
35,974
|
|
|
$
|
16,956
|
|
|
$
|
30,507
|
|
|
$
|
17,823
|
|
|
$
|
17,657
|
|
|
$
|
118,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metal Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ounces
|
31,287
|
|
|
5,473
|
|
|
32,781
|
|
|
16,094
|
|
|
|
|
85,635
|
|
|||||||
Silver ounces
|
1,894,789
|
|
|
632,237
|
|
|
|
|
14,768
|
|
|
158,984
|
|
|
2,700,778
|
|
|||||||
Zinc pounds
|
|
|
|
|
|
|
|
|
3,203,446
|
|
|
3,203,446
|
|
||||||||||
Lead pounds
|
|
|
|
|
|
|
|
|
2,453,485
|
|
|
2,453,485
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ($/oz)
|
$
|
644
|
|
|
$
|
1,394
|
|
|
$
|
931
|
|
|
$
|
1,092
|
|
|
|
|
|
||||
Silver ($/oz)
|
$
|
8.35
|
|
|
$
|
14.75
|
|
|
|
|
|
|
NM (1)
|
|
|
|
|||||||
Zinc ($/lb)
|
|
|
|
|
|
|
|
|
NM (1)
|
|
|
|
|||||||||||
Lead ($/lb)
|
|
|
|
|
|
|
|
|
NM (1)
|
|
|
|
In thousands except per ounce or per pound amounts
|
Palmarejo
|
|
Rochester
|
|
Kensington
|
|
Wharf
|
|
Silvertip
|
|
Total
|
||||||||||||
Costs applicable to sales, including amortization (U.S. GAAP)
|
$
|
47,772
|
|
|
$
|
26,491
|
|
|
$
|
43,902
|
|
|
$
|
20,073
|
|
|
$
|
34,811
|
|
|
$
|
173,049
|
|
Amortization
|
(14,528
|
)
|
|
(4,037
|
)
|
|
(11,727
|
)
|
|
(2,681
|
)
|
|
(8,426
|
)
|
|
(41,399
|
)
|
||||||
Costs applicable to sales
|
$
|
33,244
|
|
|
$
|
22,454
|
|
|
$
|
32,175
|
|
|
$
|
17,392
|
|
|
$
|
26,385
|
|
|
$
|
131,650
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Metal Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ounces
|
27,394
|
|
|
8,511
|
|
|
31,335
|
|
|
18,086
|
|
|
|
|
85,326
|
|
|||||||
Silver ounces
|
1,405,409
|
|
|
1,000,453
|
|
|
|
|
14,052
|
|
|
215,101
|
|
|
2,635,015
|
|
|||||||
Zinc pounds
|
|
|
|
|
|
|
|
|
4,723,069
|
|
|
4,723,069
|
|
||||||||||
Lead pounds
|
|
|
|
|
|
|
|
|
2,747,847
|
|
|
2,747,847
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs applicable to sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gold ($/oz)
|
$
|
716
|
|
|
$
|
1,108
|
|
|
$
|
1,027
|
|
|
$
|
950
|
|
|
|
|
|
||||
Silver ($/oz)
|
$
|
9.70
|
|
|
$
|
13.02
|
|
|
|
|
|
|
$
|
33.12
|
|
|
|
||||||
Zinc ($/lb)
|
|
|
|
|
|
|
|
|
$
|
2.85
|
|
|
|
||||||||||
Lead ($/lb)
|
|
|
|
|
|
|
|
|
$
|
2.11
|
|
|
|
Item 4.
|
Controls and Procedures
|
(a)
|
Disclosure Controls and Procedures
|
(b)
|
Management’s Report on Internal Control Over Financial Reporting
|
Item 5.
|
Other Information
|
|
|
COEUR MINING, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
Dated
|
April 22, 2020
|
/s/ Mitchell J. Krebs
|
|
|
|
MITCHELL J. KREBS
|
|
|
|
President and Chief Executive Officer (Principal Executive Officer)
|
|
|
|
|
|
Dated
|
April 22, 2020
|
/s/ Thomas S. Whelan
|
|
|
|
THOMAS S. WHELAN
|
|
|
|
Senior Vice President and Chief Financial Officer (Principal Financial Officer)
|
|
|
|
|
|
Dated
|
April 22, 2020
|
/s/ Ken Watkinson
|
|
|
|
KEN WATKINSON
|
|
|
|
Vice President, Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Coeur Mining, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under the Company's supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report the Company's conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on the Company's most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ Mitchell J. Krebs
|
|
Mitchell J. Krebs
Chief Executive Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Coeur Mining, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under the Company's supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report the Company's conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on the Company's most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
By:
|
/s/ Thomas S. Whelan
|
|
Thomas S. Whelan
Chief Financial Officer
|
/s/ Mitchell J. Krebs
|
Mitchell J. Krebs
|
April 22, 2020
|
/s/ Thomas S. Whelan
|
Thomas S. Whelan
|
April 22, 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 Proposed1,2
($)
|
Total Number of Mining Related Fatalities (#)
|
Received Notice of Pattern of Violations Under Section 104(e) (Yes/No)
|
Received Notice of Potential to Have Pattern Under Section 104(e) (Yes/No)
|
Legal Actions Pending as of Last Day of Period (#)
|
Legal Actions Initiated During Period
(#)
|
Legal Actions Resolved During Period
(#)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Kensington
|
—
|
—
|
—
|
—
|
—
|
$3,018
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rochester
|
—
|
—
|
—
|
—
|
—
|
$0
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wharf
|
—
|
—
|
—
|
—
|
—
|
$630
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sterling
|
—
|
—
|
—
|
—
|
—
|
$0
|
—
|
NO
|
NO
|
—
|
—
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Totals
|
—
|
—
|
—
|
—
|
—
|
$3,648
|
—
|
NO
|
NO
|
—
|
—
|
—
|