Coeur Mining, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Coeur Mining, Inc. has filed its Q1 2024 10-Q report, detailing financial performance and operational updates.</b>

AI Summary

Coeur Mining, Inc. (CDE) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Coeur Mining, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31st. Coeur Mining, Inc. is involved in gold and silver ores extraction. The company's principal business address is in Chicago, IL.

Why It Matters

For investors and stakeholders tracking Coeur Mining, Inc., this filing contains several important signals. This 10-Q provides investors with the latest financial statements and management discussion for the first quarter of 2024, crucial for assessing the company's current health and future prospects. Understanding the details within this filing is essential for stakeholders to evaluate Coeur Mining's performance in the gold and silver mining sector, including any changes in assets, liabilities, and equity.

Risk Assessment

Risk Level: medium — Coeur Mining, Inc. shows moderate risk based on this filing. The company's financial health and operational performance are subject to the inherent volatility of commodity prices and the complexities of mining operations, as detailed in its 10-Q filings.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to assess Coeur Mining's performance and outlook.

Key Numbers

• 2024-03-31 — Report Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-01 — Filing Date (FILED AS OF DATE)
• 1231 — Fiscal Year End (FISCAL YEAR END)
• 1040 — Standard Industrial Classification (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• Coeur Mining, Inc. (company) — FILER
• CDE (company) — FORM TYPE
• 200 SOUTH WACKER DRIVE (location) — BUSINESS ADDRESS
• CHICAGO (location) — BUSINESS ADDRESS
• IL (location) — BUSINESS ADDRESS
• 60606 (location) — BUSINESS ADDRESS
• COEUR D ALENE MINES CORP (company) — FORMER COMPANY
• 1934 Act (regulatory) — SEC ACT

FAQ

Industry Context

Coeur Mining operates in the gold and silver ores sector, a segment of the broader mining industry characterized by commodity price fluctuations and exploration risks.

Regulatory Implications

The company is subject to SEC regulations for public companies, including the requirement to file quarterly reports (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and cash flow for Q1 2024.
2. Review any disclosed operational updates or segment performance data.
3. Assess the risk factors section for potential impacts on future operations and profitability.

Key Dates

• 2024-03-31: Quarterly Period End — Financial results for Q1 2024 are reported.
• 2024-05-01: Filing Date — The 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the quarterly report for the period ending March 31, 2024, following previous filings such as annual reports and prior quarterly statements.

Key Financial Figures

• $0 — 00 shares of common stock, par value of $0.01, authorized of which 399,320,531 sha

Filing Documents

• cde-20240331.htm (10-Q) — 1646KB
• cde-03312410qex311.htm (EX-31.1) — 10KB
• cde-03312410qex312.htm (EX-31.2) — 10KB
• cde-03312410qex321.htm (EX-32.1) — 3KB
• cde-03312410qex322.htm (EX-32.2) — 3KB
• cde-03312410qex951.htm (EX-95.1) — 30KB
• cde-20240331_g1.jpg (GRAPHIC) — 120KB
• 0000215466-24-000077.txt (&nbsp;) — 9051KB
• cde-20240331.xsd (EX-101.SCH) — 63KB
• cde-20240331_cal.xml (EX-101.CAL) — 76KB
• cde-20240331_def.xml (EX-101.DEF) — 316KB
• cde-20240331_lab.xml (EX-101.LAB) — 599KB
• cde-20240331_pre.xml (EX-101.PRE) — 491KB
• cde-20240331_htm.xml (XML) — 1547KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) 5 Condensed Consolidated Statements of Cash Flows (Unaudited) 6 Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited) 7 Notes to Condensed Consolidated Financial Statements (Unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Consolidated Financial Results 25 Results of Operations 30 Liquidity and Capital Resources 33 Non-GAAP Financial Performance Measures 36

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 40

Controls and Procedures

Item 4. Controls and Procedures 42

Other Information

Part II. Other Information 43

Legal Proceedings

Item 1. Legal Proceedings 43

Risk Factors

Item 1A. Risk Factors 43

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 43

Other Information 43

Item 5. Other Information 43

Exhibits

Item 6. Exhibits 43 Signatures 44 3 PART I

Financial Statements and Supplementary Data

Item 1. Financial Statements and Supplementary Data COEUR MINING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) March 31, 2024 December 31, 2023 ASSETS Notes In thousands, except share data CURRENT ASSETS Cash and cash equivalents $ 67,489 $ 61,633 Receivables 4 36,494 31,035 Inventory 5 78,230 76,661 Ore on leach pads 5 83,454 79,400 Prepaid expenses and other 18,943 18,526 284,610 267,255 NON-CURRENT ASSETS Property, plant and equipment and mining properties, net 6 1,697,927 1,688,288 Ore on leach pads 5 43,073 25,987 Restricted assets 8,812 9,115 Receivables 4, 11 23,140 23,140 Other 62,503 67,063 TOTAL ASSETS $ 2,120,065 $ 2,080,848 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 120,137 $ 115,110 Accrued liabilities and other 17 131,845 140,913 Debt 7 23,242 22,636 Reclamation 8 10,954 10,954 286,178 289,613 NON-CURRENT LIABILITIES Debt 7 562,310 522,674 Reclamation 8 206,035 203,059 Deferred tax liabilities 16,787 12,360 Other long-term liabilities 30,626 29,239 815,758 767,332 COMMITMENTS AND CONTINGENCIES 16 STOCKHOLDERS' EQUITY Common stock, par value $ 0.01 per share; authorized 600,000,000 shares, 398,583,321 issued and outstanding at March 31, 2024 and 386,282,957 at December 31, 2023 3,986 3,863 Additional paid-in capital 4,170,568 4,139,870 Accumulated other comprehensive income (loss) ( 6,147 ) 1,331 Accumulated deficit ( 3,150,278 ) ( 3,121,161 ) 1,018,129 1,023,903 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,120,065 $ 2,080,848 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. 4 COEUR MINING, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Three Months Ended March 31, 2024 2023 Notes In thousands, except share data Revenue 3 $ 213,060 $ 187,298 COSTS AND EXPENSES Costs applicable to sales (1) 3 145,997 153,056 Amortization 27,297 22,70

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements NOTE 1 - BASIS OF PRESENTATION The interim condensed consolidated financial statements of Coeur Mining, Inc. and its subsidiaries (collectively, "Coeur" or the "Company") are unaudited. In the opinion of management, all adjustments and disclosures necessary for the fair presentation of these interim statements have been included. The results reported in these interim statements may not be indicative of the results which will be reported for the year ending December 31, 2024. The condensed consolidated December 31, 2023 balance sheet data was derived from audited consolidated financial statements. Accordingly, these unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 10-K"). NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Significant Accounting Policies Please see Note 2 — Summary of Significant Accounting Policies contained in the 2023 10-K. Use of Estimates The Company's Condensed Consolidated Financial Statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"). The preparation of the Company's Condensed Consolidated Financial Statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the related disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and reported amounts of revenues and expenses during the reporting period. The more significant areas requiring the use of management estimates and assumptions relate to metal prices and mineral reserves that are the basis for future cash flow estimates utilized in impairment calculations and units-of production amortization calculations, environmental, reclamation and closure obligations, esti

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements actual experience and revises its estimates when appropriate. The ultimate recovery will not be known until leaching operations cease. Variations between actual and estimated quantities resulting from changes in assumptions and estimates that do not result in write-downs to net realizable value are accounted for on a prospective basis. In the first quarter of 2024, the Company completed a review of the estimated recoverable ounces of gold and silver on its leach pads and determined that as a result of longer expected leach time and favorable recoveries relative to previous estimates, that the estimated recoverable gold and silver on the Rochester legacy (Stages II, III and IV) leach pads supported an upward revision. An additional 6,000 ounces of gold and 900,000 ounces of silver were added to the legacy leach pads in the first quarter of 2024. The updated recoverable ounce estimate is considered a change in estimate and was accounted for prospectively. As of March 31, 2024, the Company's estimated recoverable ounces of gold and silver on the leach pads were 30,953 and 4.9 million, respectively. Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" , which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. We are currently evaluating the p

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements NOTE 3 – SEGMENT REPORTING The Company's operating segments include the Palmarejo, Rochester, Kensington and Wharf mines and Silvertip exploration project. Except for the Silvertip exploration project, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. The Silvertip exploration project is engaged in the discovery of silver, zinc, lead, and other related metals. "Other" includes certain mineral interests, strategic equity investments, corporate office, elimination of intersegment transactions, and other items necessary to reconcile to consolidated amounts. Financial information relating to the Company's segments is as follows (in thousands): Three Months Ended March 31, 2024 Palmarejo Rochester Kensington Wharf Silvertip Other Total Revenue Gold sales $ 53,902 $ 12,681 $ 43,485 $ 41,701 $ — $ — $ 151,769 Silver sales 42,476 17,148 34 1,633 — — 61,291 Metal sales 96,378 29,829 43,519 43,334 — — 213,060 Costs and Expenses Costs applicable to sales (1) 54,294 26,999 39,289 25,415 — — 145,997 Amortization 12,602 6,633 5,596 1,393 852 221 27,297 Exploration 2,485 431 1,545 123 5,280 627 10,491 Other operating expenses 2,254 5,750 7,626 1,101 2,705 13,196 32,632 Other income (expense) Gain on debt extinguishment — — — — — 438 438 Fair value adjustments, net — — — — — — — Interest expense, net ( 26 ) ( 1,340 ) ( 471 ) ( 152 ) ( 6 ) ( 10,952 ) ( 12,947 ) Other, net (3) 546 30 ( 81 ) ( 42 ) ( 58 ) 2,378 2,773 Income and mining tax (expense) benefit ( 11,683 ) 234 — ( 1,136 ) — ( 3,439 ) ( 16,024 ) Net Income (loss) $ 13,580 $ ( 11,060 ) $ ( 11,089 ) $ 13,972 $ ( 8,901 ) $ ( 25,619 ) $ ( 29,117 ) Segment assets (2) $ 314,217 $ 1,110,479 $ 182,085 $ 102,351 $ 214,522 $ 57,607 $ 1,981,261 Capital expenditures $ 6,761 $ 21,243 $ 13,258 $ 308 $ 509 $ 4 $ 42,083 (1) Excludes amortization. (2) Segment assets include receivables, prepaids, inventories, property,

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements Assets March 31, 2024 December 31, 2023 Total assets for reportable segments $ 1,981,261 $ 1,943,037 Cash and cash equivalents 67,489 61,633 Other assets 71,315 76,178 Total consolidated assets $ 2,120,065 $ 2,080,848 Geographic Information Long-Lived Assets March 31, 2024 December 31, 2023 United States $ 1,216,739 $ 1,201,988 Mexico 252,226 256,906 Canada 228,809 229,242 Other 153 152 Total $ 1,697,927 $ 1,688,288 Revenue Three months ended March 31, 2024 2023 United States $ 116,682 $ 104,991 Mexico 96,378 82,307 Total $ 213,060 $ 187,298 NOTE 4 – RECEIVABLES Receivables consist of the following: In thousands March 31, 2024 December 31, 2023 Current receivables: Trade receivables $ 4,091 $ 3,858 VAT receivable 18,788 15,634 Income tax receivable 13,022 10,207 Gold and silver forwards realized gains (2) — 615 Other 593 721 $ 36,494 $ 31,035 Non-current receivables: Other tax receivable (3) $ 9,111 $ 9,111 Deferred cash consideration (1) 834 834 Contingent consideration (1) 13,195 13,195 $ 23,140 $ 23,140 Total receivables $ 59,634 $ 54,175 (1) See Note 11 -- Fair Value Measurements for additional details on deferred cash consideration and contingent consideration in the 2023 10-K. (2) Represents realized gains on gold and silver forward hedges from December 2023 that contractually settle in subsequent months. See Note 12 -- Derivative Financial Instruments & Hedging for additional details on the gold and silver forward hedges. (3) Consists of exploration credit refunds at Silvertip. 11 Coeur Mining, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements NOTE 5 – INVENTORY AND ORE ON LEACH PADS Inventory consists of the following: In thousands March 31, 2024 December 31, 2023 Inventory: Concentrate $ 4,238 $ 3,606 Precious metals 19,415 20,395 Supplies 54,577 52,660 $ 78,230 $ 76,661 Ore on Leach Pads: Current $ 83,454 $ 79,400 Non-current 43,073 25,987 $ 126,527 $ 105,387 Long-term Stockpile (included in Other ) $ 41,674 $ 46,702 Total Inventory and Ore on Leach Pads $ 246,431 $ 228,750 Coeur reports the carrying value of metal and leach pad inventory at the lower of cost or net realizable value, with cost being determined using a weighted average cost method. In the three months ended March 31, 2024, the cost associated with the stock-pile at Rochester exceeded its net realizable value, which resulted in non-cash write down of $ 4.0 million ($ 3.2 million was recognized in Costs applicable to sales and $ 0.8 million in Amortization ) . NOTE 6 – PROPERTY, PLANT AND EQUIPMENT AND MINING PROPERTIES, NET Property, plant and equipment and mining properties, net consist of the following: In thousands March 31, 2024 December 31, 2023 Mine development $ 1,377,235 $ 1,358,189 Mineral interests 809,912 809,912 Land 9,000 8,318 Facilities and equipment (1) 1,416,594 947,435 Construction in progress (2) 162,191 612,865 Total $ 3,774,932 $ 3,736,719 Accumulated depreciation, depletion and amortization (3) ( 2,077,005 ) ( 2,048,431 ) Property, plant and equipment and mining properties, net $ 1,697,927 $ 1,688,288 (1) Includes $ 120.8 million and $ 127.6 million associated with facilities and equipment assets under finance leases at March 31, 2024 and December 31, 2023, respectively. (2) Includes $ 18.0 million and $ 471.7 million of construction costs related to the Rochester Expansion project at March 31, 2024 and December 31, 2023, respectively. (3) Includes $ 40.1 million and $ 37.6 million of accumulated amortization related to assets under f

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements NOTE 7 – DEBT March 31, 2024 December 31, 2023 In thousands Current Non-Current Current Non-Current 2029 Senior Notes, net (1) $ — $ 289,508 $ — $ 295,115 Revolving Credit Facility (2) — 225,000 — 175,000 Finance lease obligations 23,242 47,802 22,636 52,559 $ 23,242 $ 562,310 $ 22,636 $ 522,674 (1) Net of unamortized debt issuance costs of $ 3.6 million and $ 3.9 million at March 31, 2024 and December 31, 2023, respectively. (2) Unamortized debt issuance costs of $ 4.4 million and $ 2.8 million at March 31, 2024 and December 31, 2023, respectively, included in Other Non-Current Assets . 2029 Senior Notes In March 2021, the Company completed an offering of $ 375.0 million in aggregate principal amount of senior notes in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, for net proceeds of approximately $ 367.5 million (the "2029 Senior Notes"). For more details, please see Note 9 -- Debt contained in the 2023 10-K. During the three months ended March 31, 2024, the Company exchanged $ 5.9 million in aggregate principal amount of 2029 Senior Notes plus accrued interest for 1.8 million shares of its common stock. Based on the closing price of the Company's common stock on the dates of the exchange, the exchanges resulted in a gain of $ 0.4 million on debt extinguishment. The exchange transaction represents a non-cash financing activity in the Condensed Consolidated Statement of Cash Flow. Revolving Credit Facility At March 31, 2024, the Company had $ 225.0 million drawn at a weighted-average interest rate of 9.2 %, $ 29.6 million in outstanding letters of credit and $ 145.4 million available under its $ 400.0 million revolving credit facility (the "RCF"). Future borrowing may be subject to certain financial covenants. For more details, please see Note 9 -- Debt contained in the 2023 10-K. On February 21, 2024, the Company entered into an agree

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