Coeur Mining, Inc. (NYSE: CDE) reported fourth quarter 2021 financial results, including revenue of $208 million and cash flow from operating activities of $35 million. The Company reported GAAP net loss from continuing operations of $11 million, or $0.04 per share, which included a non-cash unrealized loss of $8 million on strategic equity investments, primarily related to Coeur’s 18% equity ownership of Victoria Gold Corp. during the quarter. On an adjusted basis¹, Coeur reported EBITDA of $49 million, cash flow from operating activities before changes in working capital of $38 million and net loss from continuing operations of $12 million, or $0.05 per share.

 

For the full year, Coeur reported revenue of $833 million, cash flow from operating activities of $110 million and GAAP net loss from continuing operations of $31 million, or $0.13 per share. On an adjusted basis¹, the Company reported EBITDA of $211 million, cash flow from operating activities prior to changes in working capital of $146 million and net loss from continuing operations of $1 million, or $0.01 per share.

 

Key Highlights

• Solid fourth quarter production growth led to full-year production within guidance ranges – Gold and silver production increased 2% and 6% quarter-over-quarter, respectively, to 88,946 ounces and 2.6 million ounces. Full-year gold and silver production totaled 348,529 ounces and 10.1 million ounces, respectively, within the Company’s consolidated production guidance range for both metals

• Strong cost performance from primary gold operations – Full-year adjusted costs applicable to sales² at Palmarejo, Kensington and Wharf were within their guidance ranges for 2021 despite inflationary cost headwinds, leading to strong free cash flow¹ at each of these primary gold operations. During 2021, gold sales represented 70% of the Company’s total revenue

• Largest exploration program in Company history extended mine lives and drove resource growth – Coeur increased total exploration investment 41% year-over-year to $71 million in 2021, bringing its five-year cumulative investment in exploration to nearly $240 million, which has led to significant increases in reserves and resources. From the 2021 program, mine life extensions at Palmarejo and Wharf as well as significant resource additions at Silvertip and Kensington continue to lay the foundation for future organic growth

• Updated capital and schedule estimates for Rochester expansion provide clarity – The Company estimates the total capital for the Plan of Operations Amendment 11 (“POA 11”) will be approximately $520 million, which is in-line with recent updates. Approximately $236 million has been incurred on the project as of December 31, 2021. In addition, Coeur estimates the cost to incorporate pre-screens into the new crusher circuit and associated re-assessment of project contingency to be approximately $70 – $80 million. Construction is expected to be completed mid-2023 with commissioning to follow. Post-expansion, full-year production is expected to average roughly 8 million ounces of silver and 76,250 ounces of gold with average free cash flow¹ of $90 million from 2024 to 2034

• Silvertip trade-off study underway – The Company commenced work to assess the economics of a potential larger expansion and restart of its high-grade Silvertip silver-zinc-lead property in British Columbia. The review is evaluating the potential to target a higher throughput to take advantage of the significant resource growth and on a timetable that would sequence an expansion and restart following completion and commissioning of the Rochester expansion. Results from this ongoing work are expected by the end of the year

• Initial Technical Report Summaries filed under new SEC rules confirm strength and stability of Coeur’s multi-asset portfolio – The Company today filed initial Technical Report Summaries pursuant to Item 1300 of SEC Regulation S-K. Highlights from the reports include reserve-only based mine lives of 8 years at Palmarejo, 13 years at Rochester, 3 years at Kensington and 8 years at Wharf

 

“Solid contributions from our diversified portfolio led to Coeur’s strongest annual revenue in nearly a decade,” said Mitchell J. Krebs, President and Chief Executive Officer. “Achieving our annual production guidance for both gold and silver was particularly gratifying in light of the global economic disruptions that continue to impact our industry.

 

“Through it all, our focus remained squarely on advancing the POA 11 expansion project at Rochester in northern Nevada. Comprehensive development and planning work during the fourth quarter has provided significant clarity on costs and timing. We believe the decision to proceed with pre-screens as an expected accretive scope change to the existing project flowsheet will contribute further to Rochester’s overall flexibility. The updated Rochester capital schedule envisions a long-lived linchpin of sustainable production and free cash flow with compelling opportunities for further organic growth.

 

“We also continued our successful multi-year exploration program by executing the largest drilling campaign in Coeur’s history. Our commitment to delivering organic growth through the drill bit led to further extension of mine lives at Wharf and Palmarejo as well as enhanced understanding of geologic models in all our operating districts. We also made important new discoveries at our Silvertip property in northern British Columbia and Crown property in southern Nevada.

 

“We have taken advantage of the higher metal prices in recent years to invest in the attractive returns available from brownfield expansions and exploration to position the Company as America’s premier, growing precious metals mining company with a diversified, North American asset base capable of generating attractive returns and sustainable cash flow over the long-term.”

Financial and Operating Highlights (Unaudited)
(Amounts in millions, except per share amounts, gold/silver ounces produced & sold, and per-ounce metrics)	2021			4Q 2021			3Q 2021			2Q 2021			1Q 2021			2020			4Q 2020
Gold Sales	$	578.9		$	146.7		$	147.7		$	146.2		$	138.3		$	584.6		$	162.0
Silver Sales	$	253.9		$	61.2		$	60.2		$	68.7		$	63.8		$	200.2		$	66.4
Consolidated Revenue	$	832.8		$	207.8		$	208.0		$	214.9		$	202.1		$	785.5		$	228.3
Costs Applicable to Sales2	$	511.5		$	136.5		$	134.3		$	132.6		$	108.1		$	440.3		$	118.6
General and Administrative Expenses	$	40.4		$	9.6		$	8.7		$	10.5		$	11.6		$	33.7		$	8.4
Net Income (Loss)	$	(31.3	)	$	(10.7	)	$	(54.8	)	$	32.1		$	2.1		$	25.6		$	11.9
Net Income (Loss) Per Share	$	(0.13	)	$	(0.04	)	$	(0.21	)	$	0.13		$	0.01		$	0.11		$	0.05
Adjusted Net Income (Loss)1	$	(1.4	)	$	(11.6	)	$	(2.9	)	$	(0.8	)	$	13.9		$	59.0		$	19.1
Adjusted Net Income (Loss)1 Per Share	$	(0.01	)	$	(0.05	)	$	(0.01	)	$	0.00		$	0.06		$	0.24		$	0.08
Weighted Average Shares Outstanding		250.0			254.8			254.7			252.1			244.5			242.5			244.3
EBITDA1	$	148.4		$	28.3		$	(14.2	)	$	84.6		$	49.7		$	214.8		$	76.7
Adjusted EBITDA1	$	210.8		$	48.7		$	48.8		$	52.7		$	65.9		$	263.4		$	84.0
Cash Flow from Operating Activities	$	110.5		$	35.0		$	21.8		$	58.1		$	(4.4	)	$	148.7		$	67.3
Capital Expenditures	$	309.8		$	100.9		$	71.3		$	78.2		$	59.4		$	99.3		$	37.4
Free Cash Flow1	$	(199.3	)	$	(65.9	)	$	(49.4	)	$	(20.2	)	$	(63.8	)	$	49.4		$	29.8
Cash, Equivalents & Short-Term Investments	$	56.7		$	56.7		$	85.0		$	124.1		$	154.1		$	92.8		$	92.8
Total Debt3	$	487.5		$	487.5		$	442.4		$	414.2		$	412.1		$	275.5		$	275.5
Average Realized Price Per Ounce – Gold	$	1,652		$	1,652		$	1,645		$	1,651		$	1,664		$	1,641		$	1,663
Average Realized Price Per Ounce – Silver	$	25.06		$	23.17		$	24.18		$	26.60		$	26.19		$	20.79		$	24.21
Gold Ounces Produced		348,529			88,946			87,083			87,275			85,225			355,678			96,377
Silver Ounces Produced		10.1			2.6			2.5			2.6			2.4			9.7			2.8
Gold Ounces Sold		350,347			88,930			89,804			88,501			83,112			356,251			97,400
Silver Ounces Sold		10.1			2.6			2.5			2.6			2.4			9.6			2.7

Financial Results

 

Fourth quarter 2021 revenue totaled $208 million compared to $208 million in the prior period and $228 million in the fourth quarter of 2020. The Company produced 88,946 and 2.6 million ounces of gold and silver, respectively, during the quarter. Metal sales totaled 88,930 ounces of gold and 2.6 million ounces of silver. Average realized gold and silver prices for the quarter were $1,652 and $23.17 per ounce, respectively, compared to $1,645 and $24.18 per ounce in the prior period and $1,663 and $24.21 per ounce in the fourth quarter of 2020.

 

Coeur generated $833 million in revenue during 2021, representing a 6% increase year-over-year and its highest annual revenue in nearly ten years. Full-year gold and silver production totaled 348,529 and 10.1 million ounces, respectively, compared to 355,678 ounces of gold and 9.7 million ounces of silver in 2020. Metal sales in 2021 included 350,347 and 10.1 million ounces of gold and silver, respectively. Average realized gold and silver prices for the year were $1,652 and $25.06 per ounce, respectively, compared to $1,641 and $20.79 per ounce in 2020.

 

Gold and silver sales accounted for 71% and 29% of quarterly revenue, respectively. For the full year, gold and silver sales accounted for 70% and 30% of revenue. The Company’s U.S. operations accounted for approximately 61% and 62% of fourth quarter and full-year revenue, respectively.

 

Costs applicable to sales² remained consistent quarter-over-quarter at $137 million while increasing 16% year-over-year to $512 million. Higher costs during the year were due primarily to increased maintenance and consumable costs driven by inflation.

 

General and administrative expenses for the fourth quarter and full-year totaled $10 million and $40 million, respectively, compared to $9 million and $34 million in the prior periods, and at the low end of Coeur’s 2021 guidance range of $40 – $45 million. Higher general and administrative expense in the fourth quarter and full-year primarily reflects increased employee-related expenses.

 

Coeur invested approximately $18 million ($14 million expensed and $4 million capitalized) in exploration during the quarter, compared to roughly $20 million ($15 million expensed and $5 million capitalized) in the prior period. For the full year, the Company invested approximately $71 million ($51 million expensed and $20 million capitalized), compared to roughly $51 million ($43 million expensed and $8 million capitalized), reflecting completion of the largest exploration program in Coeur’s history and within the Company’s 2021 guidance range of $65 – $75 million. See the “Operations” and “Exploration” sections for additional detail on the Company’s exploration activities.

 

Operating costs related to COVID-19 mitigation and response efforts remained relatively steady quarter-over-quarter at $1 million, bringing the full-year expense to approximately $7 million. These costs were primarily driven by employee-related expenses at Kensington and Palmarejo, and are included in “Pre-development, reclamation, and other expenses” on the Company’s income statement. Coeur has maintained rigorous health and safety protocols across its operations aimed at limiting the exposure and transmission of COVID-19 which has led to minimal business interruptions.

 

The Company recorded income tax expense of approximately $1 million and $35 million during the fourth quarter and for the full year, respectively. Cash income and mining taxes paid during the period totaled approximately $10 million, bringing the full-year figure to $57 million. Cash taxes paid in 2021 primarily reflect income and mining tax payments in Mexico. Additionally, Coeur expects to pay approximately $20 – $25 million in cash taxes during the first quarter of 2022 primarily as a result of its annual tax filings in Mexico.

 

Quarterly operating cash flow totaled $35 million compared to $22 million in the prior period, largely driven by favorable changes in working capital resulting primarily from the timing of payments. The Company satisfied the remaining $8 million obligation under its prepayment agreement at Kensington and exercised an option to receive an additional $15 million prepayment, resulting in a net cash inflow of approximately $7 million in the fourth quarter. For the full year, operating cash flow decreased 26% to $110 million largely driven by lower profitability at Rochester, Kensington and Wharf.

 

Capital expenditures increased 42% quarter-over-quarter to $101 million, bringing the full-year total to $310 million and within Coeur’s 2021 guidance range of $280 – $310 million. Higher quarterly capital expenditures were driven by increased investment across the Company’s portfolio. Expenditures related to the POA 11 expansion project at Rochester totaled $47 million and $148 million during the quarter and full-year, respectively. Sustaining and development capital expenditures accounted for approximately 32% and 68%, respectively, of Coeur’s total capital investment in 2021.

 

Capital Projects Update

 

Rochester Expansion

 

As previously disclosed, the Company began seeing inflationary pressures on bids for remaining unawarded contracts on the POA 11 expansion project at Rochester during the second half of 2021, most notably on two structural, mechanical, piping, electrical and instrumentation (“SMPEI”) construction contracts for the Merrill-Crowe process plant and crushing circuit, respectively. Coeur recently selected TIC – The Industrial Company, a subsidiary of Kiewit, as the general SMPEI contractor for construction of the Merrill-Crowe process plant and crusher corridor based on a revised commercial approach from the previous lump-sum commercial model to a single contract. SMPEI work under the initial contract is beginning to advance.

 

Coeur has also advanced work related to implementation of pre-screens as part of the POA 11 expansion project and has elected to proceed with this scope change enhancement. As previously disclosed, the Company plans to integrate pre-screens into the current crushing system at Rochester, which is expected to drive improved performance while providing valuable operating experience and knowledge that can be applied to the new crushing circuit as part of the POA 11 expansion. Coeur has commenced detailed engineering for pre-screens and intends to align construction of the pre-screens with the completion of the crusher corridor. Installation of pre-screens on the existing crusher system is scheduled for the first half of 2022 with commissioning expected to begin around mid-year.

 

In connection with the items discussed above, the Company has conducted a comprehensive re-baselining of the overall schedule and costs associated with the original scope of POA 11. Updates to key elements of the project timeline including commissioning are highlighted below:

 

 

	Start Date	Initial Target Completion Date	Updated Target Completion Date
Stage VI Leach Pad	2H 2020 ✓	Mid-2022	Mid-2023
Merrill-Crowe Process Plant	1H 2021 ✓	YE 2022	Mid-2023
Crushing Circuit	1H 2021 ✓	YE 2022	3Q-2023

 

 

Coeur now estimates the total construction capital for POA 11 to be approximately $597 million, which includes the 10-15% previously announced potential cost escalation as well as $70 – $80 million related to pre-screen implementation and additional project contingency to reflect ongoing COVID and schedule risk. As of December 31, 2021, the Company has incurred approximately $236 million in the expansion and 61% of the capital is now committed (excluding the recently-awarded SMPEI contract, which is expected to be formalized in the first quarter).

 

Excluding capital leases, Coeur forecasts capital expenditures related to POA 11 to be approximately $217 – $257 million and $131 – $171 million in 2022 and 2023, respectively. Additional details on expected production and capital expenditures for Rochester can be found in the Technical Report Summary filed by the Company with the U.S. Securities and Exchange Commission on February 16, 2022 and summarized below.

 

Average Throughput (tons)4	35 million
Life of Mine based on Reserves	13 years
Strip Ratio	0.53:1
Average Production (ounces) (Ag / Au)4	8 million / 76,250
Average Placed Grade (ounce per ton) (Ag / Au)	0.39 / 0.003
Recovered Placed Metal (Ag / Au)	(62% / 92%)
Mining Cost Per Ton4	$1.35
Processing Cost Per Ton4	$2.15
G&A Cost Per Ton4	$0.64
Annual Average Free Cash Flow1,4	$90 million
NPV5%	$348 million
IRR	17%
Note: for a description of the key assumptions, parameters and methods used to estimate the foregoing, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by known environmental, permitting, legal, title, taxation, sociopolitical, marketing or other relevant factors, please review the Technical Report Summary for Rochester which is available at www.sec.gov.

Silvertip Expansion and Restart

 

As previously disclosed, the Company received preliminary capital estimates for an accelerated expansion and restart which were higher than originally anticipated and reflected overall inflationary pressures as well as supply disruptions and labor market tightness consistent with broader macroeconomic themes.

 

Coeur continues to generate positive results from ongoing exploration as highlighted by the 62% year-over-year increase in inferred resource tons. The Company continues to evaluate various opportunities to enhance the economics of a potential expansion and restart of Silvertip. Exploration investment in the fourth quarter and full-year totaled approximately $4 million (substantially all expensed) and $19 million ($15 million expensed and $3 million capitalized), respectively.

 

Up to seven core drill rigs were active during the quarter (five on surface and two underground) focused on expansion drilling at southern portions and deeper extensions of the Southern Silver, Discovery South and Camp Creek zones. A total of approximately 337,000 feet (102,725 meters) were drilled during the year, including roughly 75,100 feet (22,875 meters) drilled during the fourth quarter.

 

Recent surface drilling from south of the Southern Silver zone has cut 11 horizontal manto-style massive sulfide horizons with greater than 10% sphalerite, further suggesting the mineral system extends to the south. Similarly, surface drilling at the Camp Creek zone discovered a new chimney-style massive sulfide zone west of the Camp Creek fault, an area that remains completely open to expansion. At the end of 2021, all of the extensions from Discovery South, Southern Silver and Camp Creek ore bodies remain completely open for expansion. In 2022, Coeur plans to continue the resource growth program and follow-up drilling activity on the newly discovered zones. Additionally, ongoing metallurgical test work is continuing to validate the Company’s assumptions on potential recovery rates and concentrate qualities.

 

Ongoing carrying costs at Silvertip totaled $6 million in the fourth quarter, compared to $6 million in the prior period. For the full year, ongoing carrying costs totaled $25 million. Capital expenditures during the fourth quarter totaled $26 million compared to $15 million in the prior period as Coeur completed mill decommissioning and planned early civil works construction during the quarter. For 2022, capital expenditures are expected to be approximately $18 – $24 million, primarily focused on underground development and infill drilling as well as study work to evaluate additional opportunities to enhance the economics of a potential expansion and restart.

 

Liquidity Update

 

The Company ended the year with total liquidity of approximately $257 million, including $57 million of cash and $200 million of available capacity under its $300 million revolving credit facility⁵. The aggregate borrowing capacity under the RCF may be increased by up to $100 million. Additionally, the Company had $132 million of strategic investments in equity securities and the full $100 million available under its at-the-market common stock offering program established in April 2020.

 

Hedging Update

 

The Company did not execute any additional hedges during the fourth quarter. Coeur continues to proactively monitor market conditions to potentially layer in additional hedges on up to 70% of expected gold production in 2022 to provide greater assurance of expected cash flow during this period of elevated capital expenditures. The Company’s silver price exposure remains unhedged. An overview of the hedges currently implemented is outlined below:

 

		2022
Gold Ounces Hedged		132,000
Avg. Ceiling ($/oz)		$2,038
Avg. Floor ($/oz)		$1,630

 

Mark-to-Market Adjustments

 

The Company values its strategic investments in equity securities as of the end of each reporting period. The estimated fair values of the Company’s equity investments in Victoria Gold Corp. and Integra Resources Corp. were $124 million and $8 million, respectively, at December 31, 2021 compared to $131 million and $9 million, respectively, at September 30, 2021, resulting in a non-cash unrealized loss of $8 million during the fourth quarter of 2021. This figure is included in “Fair value adjustments, net” on the Company’s income statement.

 

Rochester LCM Adjustment

 

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. At the end of the fourth quarter, the cost of ore on leach pads at Rochester exceeded its net realizable value which resulted in a lower of cost or market (“LCM”) adjustment of $8 million (approximately $7 million in costs applicable to sales² and $1 million of amortization).

 

Operations

 

Fourth quarter and full-year 2021 highlights for each of the Company’s operations are provided below.

Palmarejo, Mexico
(Dollars in millions, except per ounce amounts)	2021			4Q 2021			3Q 2021			2Q 2021			1Q 2021			2020			4Q 2020
Tons milled		2,106,741			587,615			517,363			517,373			484,390			1,751,525			509,848
Average gold grade (oz/t)		0.056			0.055			0.050			0.058			0.062			0.070			0.076
Average silver grade (oz/t)		3.93			3.86			3.86			3.94			4.07			4.45			4.30
Average recovery rate – Au		92.8	%		89.7	%		93.7	%		92.4	%		95.7	%		89.9	%		88.9	%
Average recovery rate – Ag		82.4	%		81.3	%		85.5	%		81.9	%		81.3	%		80.4	%		81.3	%
Gold ounces produced		109,202			28,748			24,254			27,595			28,605			110,608			34,511
Silver ounces produced (000’s)		6,821			1,843			1,708			1,667			1,603			6,269			1,783
Gold ounces sold		108,806			27,706			24,897			30,516			25,687			110,822			35,359
Silver ounces sold (000’s)		6,806			1,813			1,715			1,640			1,638			6,302			1,767
Average realized price per gold ounce	$	1,380		$	1,374		$	1,335		$	1,351		$	1,462		$	1,390		$	1,395
Average realized price per silver ounce	$	25.00		$	23.26		$	24.15		$	26.71		$	26.12		$	21.03		$	24.45
Metal sales	$	320.3		$	80.4		$	74.6		$	85.0		$	80.3		$	286.6		$	92.5
Costs applicable to sales2	$	153.7		$	38.8		$	39.0		$	41.9		$	34.0		$	125.2		$	36.1
Adjusted CAS per AuOz1	$	663		$	653		$	704		$	662		$	621		$	609		$	542
Adjusted CAS per AgOz1	$	11.95		$	11.25		$	12.50		$	13.34		$	10.98		$	9.13		$	9.61
Exploration expense	$	8.6		$	2.3		$	2.8		$	1.8		$	1.7		$	7.0		$	2.6
Cash flow from operating activities	$	102.7		$	32.9		$	23.2		$	33.4		$	13.2		$	118.3		$	43.2
Sustaining capital expenditures (excludes capital lease payments)	$	36.5		$	8.3		$	8.4		$	9.8		$	10.0		$	25.5		$	9.0
Development capital expenditures	$	—		$	(0.1	)	$	0.1		$	—		$	—		$	—		$	(0.1	)
Total capital expenditures	$	36.5		$	8.2		$	8.5		$	9.8		$	10.0		$	25.5		$	8.9
Free cash flow1	$	66.2		$	24.7		$	14.7		$	23.6		$	3.2		$	92.8		$	34.3

 

Operational

• Fourth quarter gold and silver production totaled 28,748 and 1.8 million ounces, respectively, compared to 24,254 and 1.7 million ounces in the prior period and 34,511 and 1.8 million ounces in the fourth quarter of 2020. For the full year, gold and silver production totaled 109,202 and 6.8 million ounces, respectively, and were within 2021 guidance ranges of 100,000 – 110,000 ounces of gold and 6.5 – 7.8 million ounces of silver

• Production during the quarter benefited from a 14% increase in mill throughput as well as higher average gold grade, partially offset by lower gold and silver recoveries due to an increase of in-circuit inventory

 

Financial

• Fourth quarter adjusted CAS¹ for gold and silver on a co-product basis decreased 7% and 10% to $653 and $11.25 per ounce, respectively, reflecting higher metal sales partially offset by higher cement consumption related to ongoing rehabilitation efforts

• For the full year, adjusted CAS¹ for gold and silver totaled $663 and $11.95 per ounce, respectively, compared to $609 and $9.13 in the prior period. Both cost metrics finished the year within their 2021 guidance ranges of $635 – $735 and $11.75 – 12.75 per ounce of gold and silver, respectively, and benefited from Mexican Peso hedges

• Capital expenditures remained relatively consistent quarter-over-quarter at $8 million, reflecting continued investment in business improvement projects, underground development and infill drilling. Full-year capital expenditures increased 43% to $37 million, primarily as a result of increased underground development and business improvement projects

• Free cash flow¹ in the fourth quarter totaled $25 million compared to $15 million in the prior period, largely driven by higher metal sales

 

Exploration

• Exploration investment decreased 17% quarter-over-quarter to approximately $4 million ($2 million expensed and $1 million capitalized), while full-year exploration investment increased 31% year-over-year to roughly $14 million ($9 million expensed and $6 million capitalized)

• Up to seven surface and underground core drill rigs were active during the quarter. A total of approximately 49,500 feet (15,075 meters) were drilled during the period, including 23,800 feet (7,250 meters) of expansion and 25,700 feet (7,825 meters) of infill drilling. For the full year, a total of approximately 243,500 feet (74,200 meters) were drilled, including 104,200 feet (31,750 meters) of expansion and 139,300 feet (42,450 meters) of infill drilling

• Infill drilling focused on specific zones within the Independencia and Guadalupe deposits while surface rigs targeted areas of the northwest Independencia, Hidalgo (located within the Independencia deposit) and La Patria (located within the Guadalupe deposit) zones

• Expansion drilling during the quarter continued to focus on the Hidalgo and El Ojito (located in the northeastern portion of the Independencia deposit) zones

• Coeur began greenfield drilling in the La Carmela (located within the Guazapares district and outside the gold stream area of influence) zone after receiving surface agreements and environmental permits early in the quarter

• Coeur plans for six drill rigs to be active at Palmarejo in the first quarter of 2022, focusing on infill drilling in northwest Independencia and Hidalgo zones, and expects to maintain this pace throughout the year

 

Other

• Approximately 43% of Palmarejo’s gold sales in the fourth quarter and full-year were sold under its gold stream agreement at a price of $800 per ounce, totaling 11,970 ounces in the fourth quarter and 46,506 ounces for the full year. The Company anticipates approximately 38% – 42% of Palmarejo’s gold sales for 2022 will be sold under the stream agreement

 

Guidance

• Full-year 2022 production is expected to be 100,000 – 110,000 ounces of gold and 6.0 – 7.0 million ounces of silver. Lower expected production in 2022 is primarily due to lower planned mining and throughput rates

• CAS¹ in 2022 are expected to be $750 – $850 per gold ounce and $13.50 – $14.50 per silver ounce. Higher CAS¹ in 2022 is a result of Coeur completing its Mexican Peso hedging program in 2021 and anticipated continued inflationary pressures

• Capital expenditures are expected to be $50 – $55 million, primarily aimed at underground development as well as development of an open pit backfill tailings storage facility

Rochester, Nevada
(Dollars in millions, except per ounce amounts)	2021			4Q 2021			3Q 2021			2Q 2021			1Q 2021			2020			4Q 2020
Ore tons placed		13,687,536			3,823,764			3,427,078			3,195,777			3,240,917			15,696,565			4,000,889
Average silver grade (oz/t)		0.42			0.40			0.43			0.38			0.45			0.52			0.53
Average gold grade (oz/t)		0.002			0.003			0.002			0.003			0.003			0.002			0.002
Silver ounces produced (000’s)		3,158			757			739			888			774			3,175			1,020
Gold ounces produced		27,051			6,864			6,051			7,232			6,904			27,147			9,590
Silver ounces sold (000’s)		3,242			801			758			912			771			3,054			912
Gold ounces sold		27,697			7,386			5,559			7,818			6,934			26,257			8,672
Average realized price per silver ounce	$	25.04		$	22.98		$	24.27		$	26.38		$	26.34		$	20.93		$	24.35
Average realized price per gold ounce	$	1,793		$	1,797		$	1,785		$	1,794		$	1,794		$	1,765		$	1,825
Metal sales	$	130.8		$	31.6		$	28.3		$	38.1		$	32.8		$	110.3		$	38.2
Costs applicable to sales2	$	131.2		$	37.5		$	31.7		$	38.0		$	24.0		$	86.1		$	31.7
Adjusted CAS per AgOz1	$	23.57		$	21.76		$	22.68		$	26.09		$	19.07		$	16.27		$	20.18
Adjusted CAS per AuOz1	$	1,691		$	1,707		$	1,665		$	1,787		$	1,300		$	1,370		$	1,537
Exploration expense	$	6.0		$	2.2		$	2.4		$	0.9		$	0.5		$	3.3		$	0.8
Cash flow from operating activities	$	(26.5	)	$	(12.3	)	$	(9.5	)	$	4.0		$	(8.7	)	$	(8.1	)	$	4.7
Sustaining capital expenditures (excludes capital lease payments)	$	17.5		$	5.8		$	2.4		$	7.3		$	2.0		$	7.0		$	2.9
Development capital expenditures	$	149.0		$	48.1		$	37.7		$	35.0		$	28.2		$	30.5		$	13.9
Total capital expenditures	$	166.5		$	53.9		$	40.1		$	42.3		$	30.2		$	37.5		$	16.8
Free cash flow1	$	(193.0	)	$	(66.2	)	$	(49.6	)	$	(38.3	)	$	(38.9	)	$	(45.6	)	$	(12.1	)

 

Operational

• Silver and gold production in the fourth quarter totaled 0.8 million and 6,864 ounces, respectively, compared to 0.7 million and 6,051 ounces in the prior period and 1.0 million and 9,590 ounces in the fourth quarter of 2020. For the full year, silver and gold production totaled 3.2 million and 27,051 ounces, respectively and were within 2021 guidance ranges of 3.2 – 4.4 million ounces of silver and 22,500 – 32,500 ounces of gold

• Tons placed increased 12% quarter-over-quarter to 3.8 million, largely due to improved haul truck availability as well as crusher throughput. Tonnage placed was impacted by a historic rain event in October which affected approximately 10 days of production. Placement rates were supplemented by stacking roughly 1.0 million tons of run-of-mine material during the quarter

• The Company plans to install pre-screens on the existing crusher corridor aimed at mitigating the impact of fine ore material and improving recoveries. The total cost of the pre-screens is anticipated to be approximately $5 million, with commissioning expected to begin around mid-year. During construction, the project is expected to affect the Company’s ability to crush material for up to 30 days during the second quarter. The experience and knowledge gained from utilizing pre-screens will be applied to new screening technology being integrated into the new crusher system flowsheet for POA 11

 

Financial

• Fourth quarter and full-year as well as third quarter adjusted CAS¹ exclude the impact of an LCM adjustment totaling approximately $7 million and $5 million, respectively, related to the net realizable value of metal and leach pad inventory. Additionally, full-year adjusted CAS¹ figures include a non-cash inventory charge of approximately $9 million made in the second quarter related to a change in Coeur’s recovery rate assumption on the Stage IV leach pad

• Fourth quarter adjusted CAS¹ for silver and gold on a co-product basis totaled $21.76 and $1,707 per ounce, respectively, compared to $22.68 and $1,665 per ounce in the prior period, largely driven by increased maintenance and consumable costs, partially offset by higher metal sales

• Full-year adjusted CAS¹ for silver and gold on a co-product basis totaled $23.57 and $1,691 per ounce, respectively, compared to $16.27 and $1,370 per ounce in the prior period. Higher unit costs in 2021 reflect the non-cash inventory charge discussed above as well as increased maintenance and consumable costs. Excluding the non-cash charge, full-year adjusted CAS¹ for silver and gold on a co-product basis totaled $21.92 and $1,572 per ounce, respectively

• Capital expenditures increased 34% quarter-over-quarter to $54 million, bringing the full-year total to $167 million compared to $38 million in the prior year, reflecting continued investment in the POA 11 expansion project as well as several sustaining projects commenced during the period

• Free cash flow¹ in the fourth quarter and full-year totaled $(66) million and $(193) million, respectively, compared to $(50) million and $(46) million in the prior periods

 

Exploration

• Quarterly exploration investment decreased 20% quarter-over-quarter to approximately $3 million ($2 million expensed and $1 million capitalized), while full-year exploration investment increased 76% year-over-year to approximately $9 million ($6 million expensed and $3 million capitalized)

• Two reverse circulation drill rigs and two core drill rigs were active during the quarter. Infill drilling focused within the Rochester pit while expansion drilling tested Nevada Packard, North and East Rochester, Lincoln Hill and Gold Ridge. A total of approximately 32,800 feet (10,000 meters) were drilled during the period, including 30,000 feet (9,150 meters) focused on expansion and 2,800 feet (850 meters) focused on infill drilling. For the full year, a total of approximately 112,200 feet (34,200 meters) were drilled, including 81,200 feet (24,750 meters) of expansion and 31,000 feet (9,450 meters) of infill drilling

• Coeur completed its aggressive district-wide greenfield, gold-focused exploration program during the fourth quarter, which led to identifying several new expansion targets at Gold Ridge, Nevada Packard and Northeast Rochester. The Company plans to have up to two reverse circulation drill rigs active at Rochester during 2022 to focus on greenfield and resource expansion targets in these areas. Approval of an updated Plan of Operations for West Rochester (composed of Lincoln Hill, Independence Hill and Gold Ridge) is expected by the end of March which will allow the Company to accelerate the exploration program in this area

 

Guidance

• Full-year 2022 production is expected to be 3.0 – 4.0 million ounces of silver and 35,000 – 43,000 ounces of gold. Higher expected production in 2022 is a result of increased average gold and silver grades, partially offset by fewer planned crushed tons in the second quarter related to the installation of pre-screens on the existing crusher

• CAS¹ in 2022 are expected to be $20.75 – $22.75 per silver ounce and $1,490 – $1,590 per gold ounce

• Capital expenditures are expected to be $220 – $260 million primarily due to investment in the POA 11 expansion project

Kensington, Alaska
(Dollars in millions, except per ounce amounts)	2021			4Q 2021			3Q 2021			2Q 2021			1Q 2021			2020			4Q 2020
Tons milled		667,560			168,295			160,596			168,311			170,358			675,731			179,636
Average gold grade (oz/t)		0.19			0.21			0.19			0.18			0.19			0.20			0.20
Average recovery rate		93.2	%		93.9	%		93.0	%		92.7	%		93.2	%		93.0	%		93.0	%
Gold ounces produced		121,140			33,516			28,621			28,322			30,681			124,867			32,990
Gold ounces sold		122,181			33,888			29,902			26,796			31,595			124,793			31,830
Average realized price per gold ounce, gross	$	1,785		$	1,790		$	1,764		$	1,851		$	1,754		$	1,774		$	1,837
Treatment and refining charges per gold ounce	$	28		$	27		$	29		$	30		$	30		$	39		$	37
Average realized price per gold ounce, net	$	1,757		$	1,763		$	1,735		$	1,821		$	1,724		$	1,735		$	1,800
Metal sales	$	215.0		$	59.8		$	51.9		$	48.8		$	54.5		$	216.5		$	57.2
Costs applicable to sales2	$	133.1		$	37.9		$	34.6		$	29.2		$	31.4		$	121.7		$	29.3
Adjusted CAS per AuOz1	$	1,082		$	1,111		$	1,150		$	1,088		$	989		$	972		$	919
Prepayment, working capital cash flow	$	—		$	7.4		$	(7.4	)	$	7.9		$	(7.9	)	$	—		$	5.1
Exploration expense	$	6.7		$	1.6		$	2.7		$	1.3		$	1.1		$	8.6		$	0.8
Cash flow from operating activities	$	70.8		$	26.8		$	13.6		$	19.4		$	11.0		$	79.8		$	31.0
Sustaining capital expenditures (excludes capital lease payments)	$	27.5		$	8.0		$	6.3		$	6.0		$	7.2		$	19.8		$	5.8
Development capital expenditures	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total capital expenditures	$	27.5		$	8.0		$	6.3		$	6.0		$	7.2		$	19.8		$	5.8
Free cash flow1	$	43.3		$	18.8		$	7.3		$	13.4		$	3.8		$	60.0		$	25.2

 

Operational

• Gold production in the fourth quarter totaled 33,516 ounces compared to 28,621 ounces in the prior period and 32,990 ounces in the fourth quarter of 2020. For the full year, gold production totaled 121,140 ounces and was within 2021 guidance of 115,000 – 130,000 ounces

• Strong production during the quarter was driven by an 11% improvement in average gold grade and higher mill throughput quarter-over-quarter

• The higher-grade Jualin deposit accounted for approximately 19% of Kensington’s fourth quarter production, higher than roughly 13% in the prior period, largely due to mine sequencing. For the full year, Jualin accounted for approximately 18% of Kensington’s total production

 

Financial

• Fourth quarter adjusted CAS¹ totaled $1,111 per ounce compared to $1,150 per ounce in the prior period reflecting higher metal sales, partially offset by higher consumable costs and employee-related expenses. Full-year adjusted CAS¹ increased 11% to $1,082 per ounce but remained within the 2021 guidance range of $1,010 – $1,110 per ounce

• Capital expenditures increased 27% quarter-over-quarter to $8 million, largely due to increased investment in underground development. For the full year, capital expenditures increased 39% to $28 million primarily due to higher underground development investment and additional infill drilling

• Free cash flow¹ in the fourth quarter and full-year totaled $19 million and $43 million, respectively, compared to $7 million and $60 million in the prior periods. Fourth quarter free cash flow¹ benefited from increased metal sales and a favorable impact associated with the prepayment agreement, while full-year results were driven by lower metal sales

 

Exploration

• Exploration investment in the quarter totaled approximately $3 million ($2 million expensed and $1 million capitalized), compared to $4 million ($3 million expensed and $1 million capitalized) in the prior period. For the full year, exploration investment increased 4% to roughly $11 million ($7 million expensed and $4 million capitalized)

• Three underground and one surface core drill rigs were active during the quarter. A total of approximately 36,300 feet (11,050 meters) were drilled during the period, including 19,800 feet (6,025 meters) of expansion and 16,500 feet (5,025 meters) of infill drilling. For the full year, a total of roughly 156,500 feet (47,725 meters) were drilled, including 86,800 feet (26,475 meters) of expansion and 69,700 feet (21,250 meters) of infill drilling

• Three underground rigs focused on infill drilling at Elmira and upper Kensington Zone 30 as well as expansion drilling at upper Kensington Zone 30 and Raven. Additionally, one surface core rig completed scout drilling late in the period at the Valentine-Fremming target (southwest of Kensington)

• In the first quarter of 2022, three underground drill rigs are expected to focus on infill drilling at the Elmira, upper Kensington Zone 30 and Eureka veins as well as expansion drilling at the Jennifer vein

 

Guidance

• Full-year 2022 production is expected to be 110,000 – 120,000 ounces of gold. Lower anticipated production in 2022 is primarily the result of lower expected grade feed compared to 2021

• CAS¹ in 2022 are expected to be $1,150 – $1,250 per gold ounce. Higher expected CAS¹ in 2022 is primarily due to expected continued inflationary pressures

• Capital expenditures are expected to be $27 – $34 million focused on underground development and equipment replacements

Wharf, South Dakota
(Dollars in millions, except per ounce amounts)	2021			4Q 2021			3Q 2021			2Q 2021			1Q 2021			2020			4Q 2020
Ore tons placed		4,702,882			1,074,189			1,489,169			1,025,481			1,114,043			4,710,875			1,047,647
Average gold grade (oz/t)		0.027			0.022			0.025			0.032			0.030			0.027			0.024
Gold ounces produced		91,136			19,818			28,157			24,126			19,035			93,056			19,286
Silver ounces produced (000’s)		90			15			16			33			26			115			33
Gold ounces sold		91,663			19,950			29,446			23,371			18,896			94,379			21,539
Silver ounces sold (000’s)		86			11			18			31			26			114			35
Average realized price per gold ounce	$	1,795		$	1,799		$	1,789		$	1,801		$	1,791		$	1,777		$	1,835
Metal sales	$	166.7		$	36.2		$	53.1		$	42.9		$	34.5		$	170.2		$	40.3
Costs applicable to sales2	$	93.6		$	22.4		$	29.1		$	23.4		$	18.7		$	89.6		$	21.4
Adjusted CAS per AuOz1	$	994		$	1,104		$	971		$	963		$	952		$	887		$	954
Exploration expense	$	0.1		$	(0.1	)	$	—		$	0.1		$	0.1		$	0.9		$	0.3
Cash flow from operating activities	$	58.4		$	8.4		$	24.9		$	17.3		$	7.8		$	74.9		$	14.1
Sustaining capital expenditures (excludes capital lease payments)	$	4.0		$	3.0		$	0.3		$	0.3		$	0.4		$	2.4		$	1.2
Development capital expenditures	$	4.1		$	1.2		$	0.7		$	1.1		$	1.1		$	—		$	—
Total capital expenditures	$	8.1		$	4.2		$	1.0		$	1.4		$	1.5		$	2.4		$	1.2
Free cash flow1	$	50.3		$	4.2		$	23.9		$	15.9		$	6.3		$	72.5		$	12.9

 

Operational

• Gold production in the fourth quarter totaled 19,818 ounces compared to 28,157 ounces in the prior period and 19,286 ounces in the fourth quarter of 2020. For the full year, gold production totaled 91,136 ounces, within 2021 guidance of 85,000 – 95,000 ounces

• Lower production during the quarter was due primarily to lower grade material placed on the leach pad during the prior period as a result of planned mine sequencing

 

Financial

• Adjusted CAS¹ on a by-product basis increased 14% quarter-over-quarter to $1,104 per ounce, largely driven by lower metal sales. Full-year adjusted CAS¹ totaled $994 per ounce and was within 2021 guidance of $960 – $1,060 per ounce

• Capital expenditures in the fourth quarter totaled $4 million compared to $1 million in the prior period, primarily related to new equipment purchases as well as increased investment in infill drilling. Full-year capital expenditures totaled $8 million compared to $2 million in 2020, primarily reflecting increased investment in infill drilling during the year

• Free cash flow¹ was $4 million and $50 million in the fourth quarter and full-year, respectively, compared to $24 million and $73 million in the prior periods. Lower free cash flow¹ in the fourth quarter and full-year was largely driven by lower metal sales

 

Exploration

• Exploration investment in the quarter and year totaled approximately $1 million (substantially all capitalized) and approximately $4 million (substantially all capitalized) as the Company made its largest exploration investment since acquiring the asset in 2015

• A total of approximately 21,700 feet (6,625 meters) were drilled during the period using one reverse circulation rig focusing on infill targets at the Portland Ridge – Boston claim group (located on the southern edge of the operation), Flossie (located west of Portland Ridge) and Juno (located north of the Portland pit) areas. For the full year, a total of roughly 123,400 feet (37,625 meters) were drilled

• The Company plans to have one reverse circulation rig during the first quarter of 2022 focused on infill drilling at the Flossie and Portland Ridge areas

 

Guidance

• Full-year 2022 production is expected to be 70,000 – 80,000 ounces. Lower anticipated production in 2022 is primarily related to lower expected gold grade due to mine sequencing

• CAS¹ in 2022 are expected to be $1,225 – $1,325 per gold ounce. Higher expected CAS¹ in 2022 is due to lower expected metal sales as well as continued inflationary pressures

• Capital expenditures are expected to be $2 – $5 million

 

Exploration

 

The fourth quarter marked the end of a record-breaking exploration year for Coeur, wrapping up an industry-leading exploration program. During the fourth quarter, Coeur drilled roughly 251,300 feet (76,600 meters) for a total investment of approximately $18 million ($14 million expensed and $4 million capitalized), compared to roughly 326,700 feet (99,575 meters) for a total investment of approximately $20 million ($15 million expensed and $5 million capitalized) in the prior period. The decrease in drilling activity was largely driven by the seasonal wind-down of exploration activities across the Company’s portfolio toward the end of the year.

 

For the full year, Coeur drilled roughly 1,164,100 feet (354,825 meters) at a total investment of approximately $71 million ($51 million expensed and $20 million capitalized), compared to roughly 783,200 feet (238,725 meters) at a total investment of approximately $51 million ($43 million expensed and $8 million capitalized) in 2020. Total feet drilled was 49% higher year-over-year, representing a new annual record for the Company.

 

As a result, measured and indicated resources grew across several sites, specifically at Silvertip, as silver, zinc and lead increased roughly 51%, 33% and 44%, respectively. The Company also saw promising resource growth at Palmarejo with an approximate 71% increase in gold and a roughly 44% increase in silver as well as an increase of roughly 18% in gold at Kensington.

 

Three reverse circulation drill rigs were active at the Crown exploration property in southern Nevada during the quarter, primarily focused on the Daisy, Secret Pass and SNA deposits, while one core rig focused on exploration drilling at C-Horst. The Company drilled approximately 36,100 feet (11,000 meters) and 191,400 feet (58,325 meters) during the quarter and full-year, respectively, compared to approximately 50,300 feet (15,325 meters) and 124,000 feet (37,800 meters) in the prior periods. Results were encouraging at Daisy, SNA and C-Horst where Coeur believes resource expansion is expected based on step-out drilling at all three sites.

 

The Company plans to continue the same pace of exploration at Crown during the first quarter of 2022, with one reverse circulation rig scheduled to conduct resource expansion and scout drilling on new targets within its 300-acre disturbance permit and two core rigs focused on infill drilling at C-Horst and SNA for metallurgy purposes.

 

Additionally, an amended permit to expand the C-Horst discovery footprint is expected to be received by the end of the second quarter of 2022. Coeur has experienced significant delays from the local federal agencies overseeing the permit process. Despite these delays, once received, the Company plans to begin testing multiple targets at the Pipeline Gulch and Tates Wash areas (both located between C-Horst and SNA) where surface geology, geochemistry and geophysics all indicate gold mineralization could exist similar to C-Horst.

 

2022 Guidance

 

Gold and silver production is expected to remain roughly consistent with 2021 levels, characterized by lower planned average grades at each operation as well as mine sequencing at Wharf and process enhancements at Rochester. Overall cost guidance has increased compared to 2021 primarily driven by expected inflationary pressures on operating costs.

2022 Production Guidance
			Gold			Silver
			(oz)			(K oz)
Palmarejo			100,000 – 110,000			6,000 – 7,000
Rochester			35,000 – 43,000			3,000 – 4,000
Kensington			110,000 – 120,000			—
Wharf			70,000 – 80,000			—
Total			315,000 – 353,000			9,000 – 11,000
2022 Costs Applicable to Sales Guidance
			Gold		Silver
			($/oz)		($/oz)
Palmarejo (co-product)			$750 – $850		$13.50 – $14.50
Rochester (co-product)			$1,490 – $1,590		$20.75 – $22.75
Kensington			$1,150 – $1,250		—
Wharf (by-product)			$1,225 – $1,325		—

 

2022 Capital, Exploration and G&A Guidance
				($M)
Capital Expenditures, Sustaining				$115 – $140
Capital Expenditures, Development				$205 – $250
Exploration, Expensed				$18 – $23
Exploration, Capitalized				$18 – $23
General & Administrative Expenses				$42 – $46
Note: The Company’s guidance figures assume estimated prices of $1,800/oz gold and $24.00/oz silver as well as CAD of 1.25 and MXN of 20.00. Guidance figures exclude the impact of any metal sales or foreign exchange hedges.

 

About Coeur

 

Coeur Mining, Inc. is a U.S.-based, well-diversified, growing precious metals producer with four wholly-owned operations: the Palmarejo gold-silver complex in Mexico, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska and the Wharf gold mine in South Dakota. In addition, the Company wholly-owns the Silvertip silver-zinc-lead mine in British Columbia and has interests in several precious metals exploration projects throughout North America.

 

 

Non-U.S. GAAP Measures

 

We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), operating cash flow before changes in working capital and adjusted costs applicable to sales per ounce (gold and silver) or pound (zinc or lead). We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss) and adjusted costs applicable to sales per ounce (gold and silver) and pound (zinc and lead) are important measures in assessing the Company’s overall financial performance. For additional explanation regarding our use of non-U.S. GAAP financial measures, please refer to our Form 10-K for the year ended December 31, 2021.

 

Notes

1. EBITDA, adjusted EBITDA, adjusted EBITDA margin, free cash flow, adjusted net income (loss), operating cash flow before changes in working capital and adjusted costs applicable to sales per ounce (gold and silver) or pound (lead and zinc) are non-GAAP measures. Please see tables in the Appendix for the reconciliation to U.S. GAAP. Free cash flow is defined as cash flow from operating activities less capital expenditures. Please see table in Appendix for the calculation of consolidated free cash flow.
2. Excludes amortization.
3. Includes capital leases. Net of debt issuance costs and premium received.
4. Reflects annual average for 2024 – 2034.
5. As of December 31, 2021, Coeur had $35 million in outstanding letters of credit and $65 million in borrowings under its RCF.

Average Spot Prices
	2021			4Q 2021			3Q 2021			2Q 2021					1Q 2021					2020					4Q 2020
Average Gold Spot Price Per Ounce	$	1,799		$	1,795		$	1,781		$		1,816			$	1,794				$		1,770			$	1,874
Average Silver Spot Price Per Ounce	$	25.14		$	23.33		$	23.65		$		26.69			$	26.26				$		20.55			$	24.39
Average Zinc Spot Price Per Pound	$	1.36		$	1.52		$	1.37		$		1.32			$	1.25				$		1.03			$	1.19
Average Lead Spot Price Per Pound	$	1.00		$	1.05		$	1.06		$		0.97			$	0.91				$		0.83			$	0.86
COEUR MINING, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
											December 31, 2021										December 31, 2020
ASSETS											In thousands, except share data
CURRENT ASSETS
Cash and cash equivalents											$		56,664								$		92,794
Receivables													32,417										23,484
Inventory													51,281										51,210
Ore on leach pads													81,128										74,866
Prepaid expenses and other													13,847										27,254
Assets held for sale													54,240										—
													289,577										269,608
NON-CURRENT ASSETS
Property, plant and equipment, net													319,967										230,139
Mining properties, net													852,799										716,790
Ore on leach pads													73,495										81,963
Restricted assets													9,138										9,492
Equity securities													132,197										12,943
Receivables													—										26,447
Other													57,249										56,595
TOTAL ASSETS											$		1,734,422								$		1,403,977
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable											$		103,901								$		90,577
Accrued liabilities and other													87,946										119,158
Debt													29,821										22,074
Reclamation													2,931										2,299
Liabilities held for sale													11,269										—
													235,868										234,108
NON-CURRENT LIABILITIES
Debt													457,680										253,427
Reclamation													178,957										136,975
Deferred tax liabilities													21,969										34,202
Other long-term liabilities													39,686										51,786
													698,292										476,390
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 256,919,803 issued and outstanding at December 31, 2021 and 243,751,283 at December 31, 2020													2,569										2,438
Additional paid-in capital													3,738,347										3,610,297
Accumulated other comprehensive income (loss)													(1,212				)						(11,136				)
Accumulated deficit													(2,939,442				)						(2,908,120				)
													800,262										693,479
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY											$		1,734,422								$		1,403,977

 

COEUR MINING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
	Year Ended December 31,
	2021				2020				2019
	In thousands, except share data
Revenue	$	832,828			$	785,461			$	711,502
COSTS AND EXPENSES
Costs applicable to sales(1)		511,539				440,335				551,181
Amortization		128,315				131,387				178,876
General and administrative		40,399				33,722				34,493
Exploration		51,169				42,643				22,527
Impairment of long-lived assets		—				—				250,814
Pre-development, reclamation, and other		48,678				55,654				18,421
Total costs and expenses		780,100				703,741				1,056,312
OTHER INCOME (EXPENSE), NET
Loss on debt extinguishment		(9,173	)			—				(1,281	)
Fair value adjustments, net		(543	)			7,601				16,030
Interest expense, net of capitalized interest		(16,451	)			(20,708	)			(24,771	)
Other, net		(22,925	)			(5,941	)			(3,193	)
Total other income (expense), net		(49,092	)			(19,048	)			(13,215	)
Income (loss) before income and mining taxes		3,636				62,672				(358,025	)
Income and mining tax (expense) benefit		(34,958	)			(37,045	)			11,129
Income (loss) from continuing operations	$	(31,322	)		$	25,627			$	(346,896	)
Income (loss) from discontinued operations		—				—				5,693
NET INCOME (LOSS)	$	(31,322	)		$	25,627			$	(341,203	)
OTHER COMPREHENSIVE INCOME (LOSS):
Change in fair value of derivative contracts designated as cash flow hedges		22,783				(12,434	)			(136	)
Reclassification adjustments for realized (gain) loss on cash flow hedges		(12,859	)			1,434				—
Unrealized gain (loss) on debt and equity securities		—				—				59
Other comprehensive income (loss)		9,924				(11,000	)			(77	)
COMPREHENSIVE INCOME (LOSS)	$	(21,398	)		$	14,627			$	(341,280	)
NET INCOME (LOSS) PER SHARE
Basic income (loss) per share:
Net income (loss) from continuing operations	$	(0.13	)		$	0.11			$	(1.59	)
Net income (loss) from discontinued operations		—				—				0.03
Basic	$	(0.13	)		$	0.11			$	(1.56	)
Diluted income (loss) per share:
Net income (loss) from continuing operations	$	(0.13	)		$	0.11			$	(1.59	)
Net income (loss) from discontinued operations		—				—				0.03
Diluted	$	(0.13	)		$	0.11			$	(1.56	)
(1) Excludes amortization.
COEUR MINING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
	Year Ended December 31,
	2021				2020				2019
	In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(31,322	)		$	25,627			$	(341,203	)
(Income) loss from discontinued operations		—				—				(5,693	)
Adjustments:
Amortization		128,315				131,387				178,876
Accretion		12,897				11,984				12,147
Deferred taxes		(10,932	)			(7,283	)			(36,817	)
Loss on debt extinguishment		9,173				—				1,281
Fair value adjustments, net		543				(7,634	)			(16,030	)
Stock-based compensation		13,660				8,548				9,189
Gain on modification of right of use lease		—				(4,051	)			—
Impairment of long-lived assets		—				—				250,814
Write-downs		38,596				16,821				69,246
Deferred revenue recognition		(16,226	)			(16,702	)			(1,857	)
Other		911				3,737				14,281
Changes in operating assets and liabilities:
Receivables		(983	)			(9,463	)			(2,739	)
Prepaid expenses and other current assets		489				(2,621	)			280
Inventory and ore on leach pads		(27,628	)			(34,538	)			(62,998	)
Accounts payable and accrued liabilities		(7,011	)			32,897				23,103
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		110,482				148,709				91,880
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(309,781	)			(99,279	)			(99,772	)
Proceeds from the sale of assets		6,824				5,529				1,033
Purchase of investments		(1,955	)			(2,500	)			(5,023	)
Sale of investments		935				30,831				2,109
Proceeds from notes receivable		—				—				7,168
Other		(99	)			(252	)			1,919
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(304,076	)			(65,671	)			(92,566	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock		—				—				123,059
Issuance of notes and bank borrowings, net of issuance costs		592,493				150,000				60,000
Payments on debt, finance leases, and associated costs		(430,101	)			(175,984	)			(221,854	)
Silvertip contingent consideration		—				(18,750	)			(18,697	)
Other		(4,256	)			(1,801	)			(3,404	)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		158,136				(46,535	)			(60,896	)
Effect of exchange rate changes on cash and cash equivalents		(423	)			649				531
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(35,881	)			37,152				(61,051	)
Cash, cash equivalents and restricted cash at beginning of period		94,170				57,018				118,069
Cash, cash equivalents and restricted cash at end of period	$	58,289			$	94,170			$	57,018

 

Adjusted EBITDA Reconciliation
(Dollars in thousands except per share amounts)	2021						4Q 2021							3Q 2021								2Q 2021							1Q 2021							2020								4Q 2020
Net income (loss)	$	(31,322	)				$		(10,760		)			$		(54,768		)				$	32,146						$	2,060						$	25,627							$	11,880
Interest expense, net of capitalized interest		16,451							3,211							3,237							5,093							4,910							20,708								4,719
Income tax provision (benefit)		34,958							432							6,400							15,340							12,786							37,045								25,027
Amortization		128,315							35,443							30,962							31,973							29,937							131,387								35,133
EBITDA		148,402							28,326							(14,169		)					84,552							49,693							214,767								76,759
Fair value adjustments, net		543							7,543							26,440							(37,239			)				3,799							(7,601				)				(4,110		)
Foreign exchange (gain) loss		2,779							479							1,028							499							773							2,245								1,581
Asset retirement obligation accretion		11,988							3,091							3,027							2,965							2,905							11,754								3,031
Inventory adjustments and write-downs		9,471							8,109							5,790							267							572							1,144								105
(Gain) loss on sale of assets and securities		(4,111	)						471							92							(621			)				(4,053			)				2,484								391
Value-added tax write-off		25,982							—							25,982							—							—															—
Loss on debt extinguishment		9,173							—							—							—							9,173															—
Silvertip inventory write-down		—							—							—							—							—							13,717								—
Silvertip suspension costs		—							—							—							—							—							7,164								1,092
Silvertip lease modification		—							—							—							—							—							(4,051				)				—
Silvertip gain on contingent consideration		—							—							—							—							—							(955				)				—
COVID-19 costs		6,618							681							617							2,315							3,005							15,555								5,138
Novation		—							—							—							—							—							3,819								—
Wharf inventory write-down		—							—							—							—							—							3,323								—
Adjusted EBITDA	$	210,845					$		48,700					$		48,807						$	52,738						$	65,867						$	263,365							$	83,987
Revenue	$	832,828					$		207,884					$		207,969						$	214,858						$	202,117						$	785,461							$	228,317
Adjusted EBITDA Margin		25	%						23		%					23		%					25			%				33			%				34				%				37		%
Adjusted Net Income (Loss) Reconciliation
(Dollars in thousands except per share amounts)	2021					4Q 2021							3Q 2021						2Q 2021								1Q 2021						2020							4Q 2020
Net income (loss)	$	(31,322	)			$		(10,760		)			$		(54,768		)		$		32,146						$	2,060					$	25,627						$		11,880
Fair value adjustments, net		543						7,543							26,440						(37,239			)				3,799						(7,601				)				(4,110			)
Foreign exchange loss (gain)		1,994						146							388						1,503							(43			)			(69				)				4,692
(Gain) loss on sale of assets and securities		(4,111	)					471							92						(621			)				(4,053			)			2,484								391
Value-added tax write-off		25,982						—							25,982						—							—														—
Loss on debt extinguishment		9,173						—							—						—							9,173														—
Silvertip inventory write-down		—						—							—						—							—						13,717								—
Silvertip suspension costs		—						—							—						—							—						7,164								1,092
Silvertip lease modification		—						—							—						—							—						(4,051				)				—
Silvertip gain on contingent consideration		—						—							—						—							—						(955				)				—
COVID-19 costs		6,618						681							617						2,315							3,005						15,555								5,138
Novation		—						—							—						—							—						3,819								—
Wharf inventory write-down		—						—							—						—							—						3,323								—
Tax effect of adjustments		(10,270	)					(9,696		)					(1,630		)				1,056							—						—								—
Adjusted net income (loss)	$	(1,393	)			$		(11,615		)			$		(2,879		)		$		(840			)			$	13,941					$	59,013						$		19,083
Adjusted net income (loss) per share – Basic	$	(0.01	)			$		(0.05		)			$		(0.01		)		$		0.00						$	0.06					$	0.25						$		0.08
Adjusted net income (loss) per share – Diluted	$	(0.01	)			$		(0.05		)			$		(0.01		)		$		0.00						$	0.06					$	0.24						$		0.08

 

Consolidated Free Cash Flow Reconciliation
(Dollars in thousands)	2021						4Q 2021						3Q 2021						2Q 2021							1Q 2021							2020						4Q 2020
Cash flow from operations	$	110,482					$	34,936					$	21,846					$		58,059					$		(4,359		)			$	148,709					$	67,289
Capital expenditures		309,781						100,868						71,266							78,223							59,424						99,279						37,393
Free cash flow	$	(199,299	)				$	(65,932	)				$	(49,420		)			$		(20,164		)			$		(63,783		)			$	49,430					$	29,896
Consolidated Operating Cash Flow Before Changes in Working Capital Reconciliation
(Dollars in thousands)	2021					4Q 2021						3Q 2021					2Q 2021							1Q 2021							2020						4Q 2020
Cash provided by (used in) operating activities	$	110,482				$		34,936				$		21,846			$			58,059				$			(4,359		)		$		148,709				$	67,289
Changes in operating assets and liabilities:
Receivables		983						1,999						944						(961		)					(999		)				9,463					5,617
Prepaid expenses and other		(489	)					104						80						(1,328		)					655						2,621					1,435
Inventories		27,628						9,581						3,820						(3,259		)					17,486						34,538					1,491
Accounts payable and accrued liabilities		7,011						(8,831	)					8,114						(21,069		)					28,797						(32,897		)			(17,331			)
Operating cash flow before changes in working capital	$	145,615				$		37,789				$		34,804			$			31,442				$			41,580				$		162,434				$	58,501

 

Reconciliation of Costs Applicable to Sales for Year Ended December 31, 2021
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester							Kensington				Wharf						Silvertip							Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	189,717			$	151,427						$	187,998			$	104,617					$		4,797					$		638,556
Amortization		(36,062	)			(20,187		)					(54,933	)			(11,038		)					(4,797		)					(127,017		)
Costs applicable to sales	$	153,655			$	131,240						$	133,065			$	93,579					$		—					$		511,539
Inventory Adjustments		(203	)			(8,015		)					(512	)			(256		)					—							(8,986		)
By-product credit		—				—							(370	)			(2,208		)					—							(2,578		)
Adjusted costs applicable to sales	$	153,452			$	123,225						$	132,183			$	91,115					$		—					$		499,975
Metal Sales
Gold ounces		108,806				27,697							122,181				91,663														350,347
Silver ounces		6,805,816				3,241,624							—				86,397							—							10,133,837
Zinc pounds																								—							—
Lead pounds																								—							—
Revenue Split
Gold		47	%			38		%					100	%			100		%
Silver		53	%			62		%																—		%
Zinc																								—		%
Lead																								—		%
Adjusted costs applicable to sales
Gold ($/oz)	$	663			$	1,691						$	1,082			$	994
Silver ($/oz)	$	11.95			$	23.57																$		—
Zinc ($/lb)																						$		—
Lead ($/lb)																						$		—
Reconciliation of Costs Applicable to Sales for Three Months Ended December 31, 2021
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester						Kensington					Wharf					Silvertip							Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	48,719			$	42,939					$		53,884			$	24,735				$		1,268					$		171,545
Amortization		(9,985	)			(5,433	)						(15,992	)			(2,411	)					(1,268		)					(35,089		)
Costs applicable to sales	$	38,734			$	37,506					$		37,892			$	22,324				$		—					$		136,456
Inventory Adjustments		(242	)			(7,483	)						(118	)			(53	)					—							(7,896		)
By-product credit		—				—							(123	)			(241	)					—							(364		)
Adjusted costs applicable to sales	$	38,492			$	30,023					$		37,651			$	22,030				$		—					$		128,196
Metal Sales
Gold ounces		27,706				7,385							33,889				19,950						—							88,930
Silver ounces		1,813,884				800,195																	—							2,614,079
Zinc pounds																							—							—
Lead pounds																							—							—
Revenue Split
Gold		47	%			42	%						100	%			100	%
Silver		53	%			58	%																—		%
Zinc																							—		%
Lead																							—		%
Adjusted costs applicable to sales
Gold ($/oz)	$	653			$	1,707					$		1,111			$	1,104
Silver ($/oz)	$	11.25			$	21.76															$		—
Zinc ($/lb)																					$		—
Lead ($/lb)																					$		—

 

Reconciliation of Costs Applicable to Sales for Three Months Ended September 30, 2021
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester				Kensington				Wharf				Silvertip				Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	47,763			$	36,340			$	47,362			$	32,237			$	1,258			$	164,960
Amortization		(8,747	)			(4,671	)			(12,786	)			(3,158	)			(1,258	)			(30,620	)
Costs applicable to sales	$	39,016			$	31,669			$	34,576			$	29,079			$	—			$	134,340
Inventory Adjustments		(57	)			(5,217	)			(186	)			(61	)			—				(5,521	)
By-product credit		—				—				—				(428	)			—				(428	)
Adjusted costs applicable to sales	$	38,959			$	26,452			$	34,390			$	28,590			$	—			$	128,391
Metal Sales
Gold ounces		24,897				5,559				29,902				29,446				—				89,804
Silver ounces		1,714,617				758,214				—				18,172				—				2,491,003
Zinc pounds																		—				—
Lead pounds																		—				—
Revenue Split
Gold		45	%			35	%			100	%			100	%
Silver		55	%			65	%											—	%
Zinc																		—	%
Lead																		—	%
Adjusted costs applicable to sales
Gold ($/oz)	$	704			$	1,665			$	1,150			$	971
Silver ($/oz)	$	12.50			$	22.68											$	—
Zinc ($/lb)																	$	—
Lead ($/lb)																	$	—
Reconciliation of Costs Applicable to Sales for Three Months Ended June 30, 2021
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester				Kensington				Wharf				Silvertip				Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	50,189			$	44,537			$	41,913			$	26,437			$	1,185			$	164,261
Amortization		(8,271	)			(6,506	)			(12,710	)			(2,994	)			(1,185	)			(31,666	)
Costs applicable to sales	$	41,918			$	38,031			$	29,203			$	23,443			$	—			$	132,595
Inventory Adjustments		155				(272	)			(57	)			(91	)			—				(265	)
By-product credit		—				—				—				(839	)			—				(839	)
Adjusted costs applicable to sales	$	42,073			$	37,759			$	29,146			$	22,513			$	—			$	131,491
Metal Sales
Gold ounces		30,516				7,818				26,796				23,371				—				88,501
Silver ounces		1,639,620				911,861				—				31,421				—				2,582,902
Zinc pounds																		—				—
Lead pounds																		—				—
Revenue Split
Gold		48	%			37	%			100	%			100	%
Silver		52	%			63	%											—	%
Zinc																		—	%
Lead																		—	%
Adjusted costs applicable to sales
Gold ($/oz)	$	662			$	1,787			$	1,088			$	963
Silver ($/oz)	$	13.34			$	26.09											$	—
Zinc ($/lb)																	$	—
Lead ($/lb)																	$	—

 

Reconciliation of Costs Applicable to Sales for Three Months Ended March 31, 2021
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester						Kensington						Wharf					Silvertip						Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	43,047			$	27,610					$		44,839				$	21,207				$		1,086				$		137,789
Amortization		(9,059	)			(3,577	)						(13,445	)				(2,475	)					(1,086		)				(29,642		)
Costs applicable to sales	$	33,988			$	24,033					$		31,394				$	18,732				$		—				$		108,147
Inventory Adjustments		(57	)			(313	)						(151	)				(52	)					—						(573		)
By-product credit		—				—							—					(700	)					—						(700		)
Adjusted costs applicable to sales	$	33,931			$	23,720					$		31,243				$	17,980				$		—				$		106,874
Metal Sales
Gold ounces		25,687				6,934							31,595					18,896												83,112
Silver ounces		1,637,695				771,354							—					26,455						—						2,435,504
Zinc pounds																								—						—
Lead pounds																								—						—
Revenue Split
Gold		47	%			38	%						100	%				100	%
Silver		53	%			62	%																	—		%
Zinc																								—		%
Lead																								—		%
Adjusted costs applicable to sales
Gold ($/oz)	$	621			$	1,300					$		989				$	952
Silver ($/oz)	$	10.98			$	19.07																$		—
Zinc ($/lb)																						$		—
Lead ($/lb)																						$		—
Reconciliation of Costs Applicable to Sales for Year Ended December 31 2020
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester							Kensington					Wharf						Silvertip							Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	170,077			$	100,418						$	171,204				$	102,108					$		26,580					$	570,387
Amortization		(44,873	)			(14,306		)					(49,477		)			(12,473		)					(8,923		)				(130,052		)
Costs applicable to sales	$	125,204			$	86,112						$	121,727				$	89,635					$		17,657					$	440,335
Inventory Adjustments		(158	)			(447		)					(438		)			(3,424		)					—						(4,467		)
By-product credit		—				—							—					(2,503		)					—						(2,503		)
Adjusted costs applicable to sales	$	125,046			$	85,665						$	121,289				$	83,708					$		17,657					$	433,365
Metal Sales
Gold ounces		110,822				26,257							124,793					94,379													356,251
Silver ounces		6,301,516				3,054,139												113,790							158,984						9,628,429
Zinc pounds																									3,203,446						3,203,446
Lead pounds																									2,453,485						2,453,485
Revenue Split
Gold		54	%			42		%					100		%			100		%
Silver		46	%			58		%																	NM
Zinc																									NM
Lead																									NM
Adjusted costs applicable to sales
Gold ($/oz)	$	609			$	1,370						$	972				$	887
Silver ($/oz)	$	9.13			$	16.27																			NM
Zinc ($/lb)																									NM
Lead ($/lb)																									NM
Note: “NM” means not meaningful.

 

Reconciliation of Costs Applicable to Sales for Three Months Ended December 31, 2020
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester						Kensington						Wharf					Silvertip						Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	48,672			$	36,828					$		42,486				$	24,300				$		—				$		152,286
Amortization		(12,516	)			(5,112	)						(13,179	)				(2,848	)					—						(33,655			)
Costs applicable to sales	$	36,156			$	31,716					$		29,307				$	21,452				$		—				$		118,631
Inventory Adjustments		(24	)			24							(56	)				(49	)					—						(105			)
By-product credit		—				—							—					(864	)					—						(864			)
Adjusted costs applicable to sales	$	36,132			$	31,740					$		29,251				$	20,539				$		—				$		117,662
Metal Sales
Gold ounces		35,359				8,672							31,830					21,539												97,400
Silver ounces		1,766,714				912,335												35,794						—						2,714,843
Zinc pounds																								—						—
Lead pounds																								—						—
Revenue Split
Gold		53	%			42	%						100	%				100	%
Silver		47	%			58	%																	—		%
Zinc																								—		%
Lead																								—		%
Adjusted costs applicable to sales
Gold ($/oz)	$	542			$	1,537					$		919				$	954
Silver ($/oz)	$	9.61			$	20.18																$		—
Zinc ($/lb)																						$		—
Lead ($/lb)																						$		—
Reconciliation of Costs Applicable to Sales Adjusted for Recovery Rate Adjustment for Year Ended December 31, 2021
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester							Kensington					Wharf						Silvertip								Total
Costs applicable to sales, including amortization (U.S. GAAP)	$	189,717			$	151,427						$	187,998				$	104,617					$		4,797						$	638,556
Amortization		(36,062	)			(20,187		)					(54,933		)			(11,038		)					(4,797		)					(127,017			)
Costs applicable to sales	$	153,655			$	131,240						$	133,065				$	93,579					$		—						$	511,539
Inventory Adjustments		(203	)			(8,015		)					(512		)			(256		)					—							(8,986			)
Rochester recovery rate adjustment		—				(8,628		)					—					—							—							(8,628			)
By-product credit		—				—							(370		)			(2,208		)					—							(2,578			)
Adjusted costs applicable to sales	$	153,452			$	114,597						$	132,183				$	91,115					$		—						$	491,347
Metal Sales
Gold ounces		108,806				27,697							122,181					91,663														350,347
Silver ounces		6,805,816				3,241,624							—					86,397							—							10,133,837
Zinc pounds																									—							—
Lead pounds																									—							—
Revenue Split
Gold		47	%			38		%					100		%			100		%
Silver		53	%			62		%																	—		%
Zinc																									—		%
Lead																									—		%
Adjusted costs applicable to sales
Gold ($/oz)	$	663			$	1,572						$	1,082				$	994
Silver ($/oz)	$	11.95			$	21.92																	$		—
Zinc ($/lb)																							$		—
Lead ($/lb)																							$		—

 

Reconciliation of Costs Applicable to Sales for 2022 Guidance
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester				Kensington				Wharf
Costs applicable to sales, including amortization (U.S. GAAP)	$	211,800			$	148,540			$	185,494			$	106,175
Amortization		(34,183	)			(20,094	)			(48,763	)			(8,378	)
Costs applicable to sales	$	177,617			$	128,446			$	136,731			$	97,797
By-product credit		—				—				—				(1,802	)
Adjusted costs applicable to sales	$	177,617			$	128,446			$	136,731			$	95,995
Metal Sales
Gold ounces		105,255				38,912				116,502				75,261
Silver ounces		6,501,289				3,405,155								75,093
Revenue Split
Gold	49%				46%				100%				100%
Silver	51%				54%
Adjusted costs applicable to sales
Gold ($/oz)	$750 – $850				$1,490 – $1,590				$1,150 – $1,250				$1,225 – $1,325
Silver ($/oz)	$13.50 – $14.50				$20.75 – $22.75
Reconciliation of Costs Applicable to Sales for 2021 Guidance
In thousands (except metal sales, per ounce or per pound amounts)	Palmarejo				Rochester				Kensington				Wharf
Costs applicable to sales, including amortization (U.S. GAAP)	$	195,983			$	133,836			$	181,100			$	106,710
Amortization		(36,400	)			(17,560	)			(55,930	)			(11,550	)
Costs applicable to sales	$	159,583			$	116,276			$	125,170			$	95,160
By-product credit		—				—				—				(2,635	)
Adjusted costs applicable to sales	$	159,583			$	116,276			$	125,170			$	92,525
Metal Sales
Gold ounces		107,500				29,800				123,500				91,400
Silver ounces		6,765,200				3,260,600								102,100
Revenue Split
Gold	46%				39%				100%				100%
Silver	54%				61%				—				—
Adjusted costs applicable to sales
Gold ($/oz)	$635 – $735				$1,450 – $1,550				$1,010 – $1,110				$960 – $1,060
Silver ($/oz)	$11.75 – $12.75				$21.00 – $23.00