Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
___________________________________________ 
FORM 10-Q
___________________________________________
þ
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2019
OR
 ¨   
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from              to             
Commission file number 001-08641
____________________________________________ 
a021914coeurminingrpmshsmb28.jpg
COEUR MINING, INC.
(Exact name of registrant as specified in its charter)
____________________________________________
Delaware
 
82-0109423
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
 
104 S. Michigan Ave., Suite 900 Chicago, Illinois
 
60603
(Address of principal executive offices)
 
(Zip Code)
(312) 489-5800
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:    Yes  þ    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
þ
Accelerated filer
 
¨   
 
 
 
 
Non-accelerated filer
 
¨   
Smaller reporting company
 
¨   
 
 
 
 
 
 
 
 
 
Emerging growth company
 
¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  þ
The Company has 300,000,000 shares of common stock, par value of $0.01, authorized of which 205,097,074 shares were issued and outstanding as of April 29, 2019.


COEUR MINING, INC.
INDEX
 
Condensed Consolidated Balance Sheets
Page
Part I.
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Balance Sheets
 
 
 
 
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
 
 
 
 
Condensed Consolidated Statements of Cash Flows (Unaudited)
 
 
 
 
Condensed Consolidated Statement of Changes in Stockholders’ Equity
 
 
 
 
Notes to Condensed Consolidated Financial Statements (Unaudited)
 
 
 
 
 
 
 
 
Consolidated Financial Results
 
 
 
 
Results of Operations
 
 
 
 
Liquidity and Capital Resources
 
 
 
 
Non-GAAP Financial Performance Measures
 
 
 
 
 
 
 
 
 
 
 
Part II.
 
 
 
 
 
 
 
 
Item 1A. Risk Factors
 
 
 
 
 
 
 
 
Item 5. Other Information
 
 
 
 
Item 6. Exhibits
 
 
 
Signatures



2

PART I
Item 8.        Financial Statements and Supplementary Data

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
March 31, 2019 (unaudited)
 
December 31, 2018
ASSETS
Notes
In thousands, except share data
CURRENT ASSETS
 
 
 
 
Cash and cash equivalents
 
$
69,033

 
$
115,081

Receivables
4
33,530

 
29,744

Inventory
5
60,653

 
66,279

Ore on leach pads
5
74,517

 
75,122

Prepaid expenses and other
 
13,681

 
11,393

 
 
251,414

 
297,619

NON-CURRENT ASSETS
 
 
 
 
Property, plant and equipment, net

299,756

 
298,451

Mining properties, net

962,058

 
971,567

Ore on leach pads
5
72,633

 
66,964

Restricted assets

10,444

 
12,133

Equity and debt securities
6
25,875

 
17,806

Receivables
4
31,571

 
31,151

Other
7
77,614

 
16,809

TOTAL ASSETS
 
$
1,731,365

 
$
1,712,500

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
Accounts payable
 
$
51,777

 
$
47,210

Accrued liabilities and other
18
102,136

 
82,619

Debt
8
24,520

 
24,937

Reclamation
9
6,552

 
6,552

 
 
184,985

 
161,318

NON-CURRENT LIABILITIES
 
 
 
 
Debt
8
432,269

 
433,889

Reclamation
9
131,275

 
128,994

Deferred tax liabilities
 
70,811

 
79,070

Other long-term liabilities
7
79,690

 
56,717

 
 
714,045

 
698,670

COMMITMENTS AND CONTINGENCIES
17
 
 
 
STOCKHOLDERS’ EQUITY
 
 
 
 
Common stock, par value $0.01 per share; authorized 300,000,000 shares, 205,111,221 issued and outstanding at March 31, 2019 and 203,310,443 at December 31, 2018
 
2,051

 
2,033

Additional paid-in capital
 
3,442,029

 
3,443,082

Accumulated other comprehensive income (loss)
 
—

 
(59
)
Accumulated deficit
 
(2,611,745
)
 
(2,592,544
)
 
 
832,335

 
852,512

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
1,731,365

 
$
1,712,500


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.


3

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
 
 
Three Months Ended March 31,
 
 
2019
 
2018
 
Notes
In thousands, except share data
Revenue
3
$
154,870

 
$
163,267

COSTS AND EXPENSES
 
 
 
 
Costs applicable to sales(1)
3
131,650

 
99,340

Amortization
 
41,876

 
30,777

General and administrative
 
9,474

 
8,804

Exploration
 
3,714

 
6,683

Pre-development, reclamation, and other
 
4,434

 
4,225

Total costs and expenses
 
191,148

 
149,829

OTHER INCOME (EXPENSE), NET
 
 
 
 
Fair value adjustments, net
12
9,120

 
4,654

Interest expense, net of capitalized interest
8
(6,454
)
 
(5,965
)
Other, net
14
60

 
513

Total other income (expense), net
 
2,726

 
(798
)
Income (loss) before income and mining taxes
 
(33,552
)
 
12,640

Income and mining tax (expense) benefit
10
8,658

 
(11,949
)
Income (loss) from continuing operations
 
$
(24,894
)
 
$
691

Income (loss) from discontinued operations
18
5,693

 
550

NET INCOME (LOSS)
 
$
(19,201
)
 
$
1,241

OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
 
 
 
 
Unrealized gain (loss) on debt and equity securities
 
59

 
(278
)
Other comprehensive income (loss)
 
59

 
(278
)
COMPREHENSIVE INCOME (LOSS)
 
$
(19,142
)
 
$
963

 
 
 
 
 
NET INCOME (LOSS) PER SHARE
15
 
 
 
Basic income (loss) per share:
 
 
 
 
Net income (loss) from continuing operations
 
$
(0.12
)
 
$
0.00

Net income (loss) from discontinued operations
 
0.03

 
0.00

Basic(2)
 
$
(0.09
)
 
$
0.01

Diluted income (loss) per share:
 
 
 
 
Net income (loss) from continuing operations
 
$
(0.12
)
 
$
0.00

Net income (loss) from discontinued operations
 
0.03

 
0.00

Diluted(2)
 
$
(0.09
)
 
$
0.01

(1) Excludes amortization.
(2) Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

4

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
 
Three Months Ended March 31,
 
 
2019
 
2018
 
Notes
In thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
Net income (loss)
 
$
(19,201
)
 
$
1,241

(Income) loss from discontinued operations
 
(5,693
)
 
(550
)
Adjustments:
 
 
 
 
Amortization
 
41,876

 
30,777

Accretion
 
2,943

 
3,318

Deferred taxes
 
(8,259
)
 
454

Fair value adjustments, net
12
(9,120
)
 
(4,654
)
Stock-based compensation
11
2,223

 
2,786

Inventory write-downs
5
15,447

 
—

Other
 
1,250

 
68

Changes in operating assets and liabilities:
 
 
 
 
Receivables
 
(5,735
)
 
(1,691
)
Prepaid expenses and other current assets
 
(2,684
)
 
(5,635
)
Inventory and ore on leach pads
 
(18,821
)
 
(8,708
)
Accounts payable and accrued liabilities
 
(6,072
)
 
(1,865
)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES OF CONTINUING OPERATIONS
 
(11,846
)
 
15,541

CASH USED IN OPERATING ACTIVITIES OF DISCONTINUED OPERATIONS
 
—

 
(2,690
)
CASH PROVIDED BY OPERATING ACTIVITIES
 
(11,846
)
 
12,851

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
Capital expenditures
 
(27,438
)
 
(42,345
)
Proceeds from the sale of assets
 
847

 
60

Purchase of investments
 
—

 
(361
)
Sale of investments
 
1,168

 
1,619

Other
 
1,741

 
(65
)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES OF CONTINUING OPERATIONS
 
(23,682
)
 
(41,092
)
CASH USED IN INVESTING ACTIVITIES OF DISCONTINUED OPERATIONS
 
—

 
(28,470
)
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
 
(23,682
)
 
(69,562
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
Issuance of notes and bank borrowings, net of issuance costs
8
15,000

 
15,000

Payments on debt, finance leases, and associated costs
8
(22,356
)
 
(18,449
)
Other
 
(3,364
)
 
(4,606
)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES OF CONTINUING OPERATIONS
 
(10,720
)
 
(8,055
)
CASH USED IN FINANCING ACTIVITIES OF DISCONTINUED OPERATIONS
 
—

 
(22
)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
 
(10,720
)
 
(8,077
)
Effect of exchange rate changes on cash and cash equivalents
 
201

 
557

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
 
(46,047
)
 
(64,231
)
Less net cash provided by (used in) discontinued operations(1)
 
—

 
(32,930
)
 
 
(46,047
)
 
(31,301
)
Cash, cash equivalents and restricted cash at beginning of period
 
118,069

 
203,402

Cash, cash equivalents and restricted cash at end of period
 
$
72,022

 
$
172,101

(1) Less net cash provided by (used in) discontinued operations includes the following cash transactions: net subsidiary payments to parent company of $1,748, during the three months ended March 31, 2018.
The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

5

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
In thousands
Common
Stock
Shares
 
Common
Stock Par
Value
 
Additional
Paid-In Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Balances at December 31, 2018
203,310

 
$
2,033

 
$
3,443,082

 
$
(2,592,544
)
 
$
(59
)
 
852,512

Net income (loss)
—

 
—

 
—

 
(19,201
)
 
—

 
(19,201
)
Other comprehensive income (loss)
—

 
—

 
—

 
—

 
59

 
59

Common stock issued under stock-based compensation plans, net
1,801

 
18

 
(1,053
)
 
—

 
—

 
(1,035
)
Balances at March 31, 2019 (Unaudited)
205,111

 
$
2,051

 
$
3,442,029

 
$
(2,611,745
)
 
$
—

 
$
832,335



In thousands
Common
Stock
Shares
 
Common
Stock Par
Value
 
Additional
Paid-In Capital
 
Accumulated
Deficit
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Total
Balances at December 31, 2017
185,638

 
$
1,856

 
$
3,357,345

 
$
(2,546,743
)
 
$
2,519

 
814,977

Net income (loss)
—

 
—

 
—

 
1,241

 
—

 
1,241

Reclassification of unrealized gain (loss) on equity securities for ASU 2016-01

—

 
—

 
—

 
2,604

 
(2,604
)
 
—

Other comprehensive income (loss)
—

 
—

 
—

 
—

 
(278
)
 
(278
)
Common stock issued under stock-based compensation plans, net
538

 
6

 
(1,635
)
 
—

 
—

 
(1,629
)
Balances at March 31, 2018 (Unaudited)
186,176

 
$
1,862

 
$
3,355,710

 
$
(2,541,898
)
 
$
(363
)
 
$
814,311


The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

6
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed 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, 2019. The condensed consolidated December 31, 2018 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, 2018 (the “2018 10-K”).

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Significant Accounting Policies
Please see Note 2 -- Summary of Significant Accounting Policies contained in the 2018 10-K.
Leases
On January 1, 2019, the Company adopted Accounting Standards Codification (“ASC”) 842, Leases. Changes to the Company’s accounting policy as a result of adoption are discussed below.
From time to time, the Company enters into contractual agreements to lease mining equipment and facilities. Based upon the Company’s assessment of the terms of a specific lease agreement, the Company will classify a lease as either finance or operating. Right-of-use (“ROU”) assets and lease liabilities related to finance leases are presented in Property, plant and equipment, net and Debt on the Condensed Consolidated Balance Sheet. ROU assets and lease liabilities related to operating leases that are subject to the ASC 842 measurement requirements such as operating leases with lease terms greater than twelve months are presented in Other asset, non-current, Accrued liabilities and other, and Other long-term liabilities on the Condensed Consolidated Balance Sheet.    
Operating and finance lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments, is the rate implicit in the lease unless that rate cannot be readily determined, in that case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in a similar economic environment. Operating lease ROU assets may also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The ROU assets and lease liabilities may also include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The ROU asset includes any lease payments made and lease incentives received prior to the commencement date. The Company has lease arrangements with lease and non-lease components which are accounted for separately. Non-lease components of the lease payments are expenses as incurred and are not included in determining the present value.
Accounting Standards Issued and Implemented
In February 2016, the FASB issued ASU 2016-02, “Leases,” which requires lessees to recognize assets and liabilities for the rights and obligations created by most leases on the balance sheet. These changes became effective for the Company’s fiscal year beginning January 1, 2019 and the Company adopted it using the cumulative-effect adjustment transition method approved by the FASB in July 2018, which does not require the Company to recast the comparative periods presented when transitioning to the new guidance on January 1, 2019. The Company elected to utilize the transition related practical expedients permitted by the new standard. In addition to existing finance leases and other financing obligations, the adoption of the new standard resulted in the recognition of additional ROU assets and lease liabilities related to operating leases of approximately $65.0 million. There was no material impact to the Consolidated Statements of Comprehensive Income (Loss) or the Consolidated Statements of Cash Flows or an impact on the Company’s debt covenant calculations as a result of the adoption of ASU 2016-02. See Note 7 -- Leases for additional qualitative and quantitative disclosures related to leasing arrangements.
    

7
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 3 – SEGMENT REPORTING
The Company’s operating segments include the Palmarejo complex, and the Rochester, Kensington, Wharf and Silvertip mines. Except for the Silvertip mine, all operating segments are engaged in the discovery, mining, and production of gold and/or silver. The Silvertip mine is engaged in the discovery, mining, and production of silver, zinc and lead. Other includes the Sterling/Crown Block and La Preciosa projects, other 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, 2019
Palmarejo
 
Rochester
 
Kensington
 
Wharf
 
Silvertip
 
Other
 
Total
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
Gold sales
$
31,600

 
$
11,053

 
$
40,286

 
$
23,825

 
$
—

 
$
—

 
$
106,764

Silver sales
21,625

 
15,317

 
—

 
217

 
2,955

 
—

 
40,114

Zinc sales
—

 
—

 
—

 
—

 
5,634

 
—

 
5,634

Lead sales
—

 
—

 
—

 
—

 
2,358

 
—

 
2,358

Metal sales
53,225

 
26,370

 
40,286

 
24,042

 
10,947

 
—

 
154,870

Costs and Expenses
 
 
 
 
 
 
 
 
 
 
 
 


Costs applicable to sales(1)
33,244

 
22,454

 
32,175

 
17,392

 
26,385

 
—

 
131,650

Amortization
14,528

 
4,037

 
11,727

 
2,681

 
8,426

 
477

 
41,876

Exploration
1,010

 
90

 
481

 
—

 
61

 
2,072

 
3,714

Other operating expenses
702

 
962

 
271

 
664

 
241

 
11,068

 
13,908

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value adjustments, net
—

 
—

 
—

 
—

 
—

 
9,120

 
9,120

Interest expense, net
(136
)
 
(142
)
 
(229
)
 
(21
)
 
(197
)
 
(5,729
)
 
(6,454
)
Other, net
(1,040
)
 
(27
)
 
13

 
86

 
(188
)
 
1,216

 
60

Income and mining tax (expense) benefit
1,291

 
144

 
—

 
(173
)
 
9,751

 
(2,355
)
 
8,658

Income (loss) from continuing operations
$
3,856


$
(1,198
)
 
$
(4,584
)

$
3,197


$
(14,800
)
 
$
(11,365
)

$
(24,894
)
Income (loss) from discontinued operations
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
5,693

 
$
5,693

Segment assets(2)
$
360,734

 
$
271,403

 
$
221,164

 
$
103,579

 
$
417,089

 
$
174,430

 
$
1,548,399

Capital expenditures
$
8,676

 
$
4,645

 
$
9,356

 
$
431

 
$
4,077

 
$
253

 
$
27,438

(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests



8
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

Three months ended March 31, 2018
Palmarejo
 
Rochester
 
Kensington
 
Wharf
 
Silvertip
 
Other
 
Total
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
Gold sales
$
36,069

 
$
14,856

 
$
36,300

 
$
23,249

 
—

 
$
—

 
$
110,474

Silver sales
33,968

 
18,641

 
—

 
184

 
—

 
—

 
52,793

Metal sales
70,037

 
33,497

 
36,300

 
23,433

 
—

 
—

 
163,267

Costs and Expenses
 
 
 
 
 
 
 
 
 
 


 
 
Costs applicable to sales(1)
31,096

 
24,305

 
28,630

 
15,309

 
—

 
—

 
99,340

Amortization
16,325

 
4,831

 
6,717

 
2,657

 
—

 
247

 
30,777

Exploration
3,970

 
33

 
1,590

 
10

 
—

 
1,080

 
6,683

Other operating expenses
731

 
884

 
321

 
665

 
20

 
10,408

 
13,029

Other income (expense)
 
 
 
 
 
 
 
 
 
 


 
 
Loss on debt extinguishment
—

 
—

 
—

 
—

 
—

 
—

 
—

Fair value adjustments, net
—

 
—

 
—


—

 
—

 
4,654

 
4,654

Interest expense, net
(119
)

(98
)
 
(243
)

(12
)
 
(410
)
 
(5,083
)
 
(5,965
)
Other, net
(2,144
)

(40
)
 
(37
)

(21
)
 
362

 
2,393

 
513

Income and mining tax (expense) benefit
(12,443
)

(371
)
 
—


(639
)
 
835

 
669

 
(11,949
)
Income (loss) from continuing operations
$
3,209


$
2,935


$
(1,238
)

$
4,120


$
767

 
$
(9,102
)
 
$
691

Income (loss) from discontinued operations
$
—

 
$
—

 
$
—

 
$
—

 
—

 
$
550

 
$
550

Segment assets(2)
$
377,146

 
$
245,881

 
$
215,244

 
$
104,805

 
361,212

 
$
119,922

 
$
1,424,210

Capital expenditures
$
9,293

 
$
2,633

 
$
11,364

 
$
344

 
18,629

 
$
82

 
$
42,345

(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests

Assets
March 31, 2019

December 31, 2018
Total assets for reportable segments
$
1,548,399

 
$
1,550,671

Cash and cash equivalents
69,033

 
115,081

Other assets
113,933


46,748

Total consolidated assets
$
1,731,365


$
1,712,500


Geographic Information
Long-Lived Assets
March 31, 2019

December 31, 2018
Mexico
$
337,752

 
$
342,007

United States
513,399

 
515,649

Canada
402,668

 
404,185

Other
7,995

 
8,177

Total
$
1,261,814


$
1,270,018


Revenue
Three Months Ended March 31,
2019
 
2018
United States
$
90,699

 
$
93,230

Mexico
53,225

 
70,037

Canada
10,946

 
—

Total
$
154,870


$
163,267

    
    

9
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 4 – RECEIVABLES
Receivables consist of the following:
In thousands
March 31, 2019
 
December 31, 2018
Current receivables:
 
 
 
Trade receivables
$
8,065

 
$
5,147

Value added tax receivable
18,960

 
18,609

Income tax receivable
4,054

 
6

Manquiri Notes Receivable
1,982

 
5,487

Other
469

 
495

 
$
33,530

 
$
29,744

Non-current receivables:
 
 
 
Value added tax receivable(1)
$
27,237

 
$
26,817

RMC Receivable(2)
4,334

 
4,334

 
31,571

 
31,151

Total receivables
$
65,101

 
$
60,895

(1) Represents VAT that was paid to the Mexican Government associated with Coeur Mexicana’s prior royalty agreement with a subsidiary of Franco-Nevada Corporation. The Company continues to pursue recovery from the Mexican government (including through ongoing litigation).
(2) In November 2018, Republic Metals Corp. (“RMC”), a U.S.-based precious metals refiner, filed Chapter 11 bankruptcy. Approximately 0.4 million ounces of Coeur’s silver and 6,500 ounces of Coeur’s gold was impacted by RMC’s bankruptcy filing. 

NOTE 5 – INVENTORY AND ORE ON LEACH PADS
Inventory consists of the following:
In thousands
March 31, 2019
 
December 31, 2018
Inventory:
 
 
 
Concentrate
$
9,155

 
$
10,772

Precious metals
16,349

 
20,761

Supplies
35,149

 
34,746

 
60,653

 
66,279

Ore on leach pads:
 
 
 
Current
74,517

 
75,122

Non-current
72,633

 
66,964

 
147,150

 
142,086

Total inventory and ore on leach pads
$
207,803

 
$
208,365

In the first quarter of 2019, Silvertip recognized a $15.4 million write-down of metal inventory as a result of lower than expected production levels, grades and recovery rates as well as reduced process plant availability. It is possible that additional write-downs will be required as the Company works to optimize operations at Silvertip.

NOTE 6 – INVESTMENTS
Equity and Debt Securities
The Company makes strategic investments in equity and debt securities of silver and gold exploration and development companies.
 
At March 31, 2019
In thousands
Cost
 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Equity Securities
 
 
 
 
 
 
 
Metalla Royalty & Streaming Ltd.
$
11,803

 
$
—

 
$
12,055

 
$
23,858

Rockhaven Resources, Ltd.
2,064

 
(475
)
 
—

 
1,589

Other
1,356

 
(928
)
 
—

 
428

Equity securities
$
15,223

 
$
(1,403
)
 
$
12,055

 
$
25,875


10
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements



 
At December 31, 2018
In thousands
Cost
 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Equity Securities
 
 
 
 
 
 
 
Metalla Royalty & Streaming Ltd.
$
10,695

 
$
—

 
$
2,852

 
$
13,547

Rockhaven Resources, Ltd.
2,064

 
(452
)
 
—

 
1,612

Other
1,376

 
(946
)
 
—

 
430

Equity securities
$
14,135

 
$
(1,398
)
 
$
2,852

 
$
15,589

 
 
 
 
 
 
 
 
Debt Securities
 
 
 
 
 
 
 
Metalla Royalty & Streaming Ltd.
$
2,271

 
$
(54
)
 
$
—

 
$
2,217

 
 
 
 
 
 
 
 
Equity and debt securities
$
16,406

 
$
(1,452
)
 
$
2,852

 
$
17,806

(1)     In October 2018, the Company acquired the remaining outstanding shares of Northern Empire Resources Corp. not already owned by the Company.
    
The Company performs a quarterly assessment on its debt securities with unrealized losses to determine if the securities are other than temporarily impaired. At March 31, 2019, there were no debt securities with unrealized losses.

NOTE 7 – LEASES
ROU Assets and Liabilities
The following table summarizes quantitative information pertaining to the Company’s finance and operating leases.
In thousands
March 31, 2019
Lease Cost
 
ROU operating lease cost
$
3,449

 
 
Short-term operating lease cost
$
2,751

 
 
Finance Lease Cost:
 
Amortization of ROU assets
$
2,968

Interest on lease liabilities
1,107

Total finance lease cost
$
4,075

Supplemental cash flow information related to leases was as follows:
In thousands
March 31, 2019
Other Information
 
Cash paid for amounts included in the measurement of lease liabilities
 
Operating cash flows from operating leases
$
6,200

Operating cash flows from finance leases
$
1,107

Financing cash flows from finance leases
$
7,356

    
Supplemental balance sheet information related to leases was as follows:

11
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

In thousands
March 31, 2019
Operating Leases
 
Other assets, non-current
$
62,805

 
 
Accrued liabilities and other
$
13,340

Other long-term liabilities
48,326

Total operating lease liabilities
$
61,666

 
 
Finance Leases
 
Property and equipment, gross
$
106,989

Accumulated depreciation
(47,178
)
Property and equipment, net
$
59,811

 
 
Debt, current
$
24,520

Debt, non-current
51,224

Total finance lease liabilities
$
75,744

 
 
Weighted Average Remaining Lease Term
 
Weighted-average remaining lease term - finance leases
2.36

Weighted-average remaining lease term - operating leases
4.96

 
 
Weighted Average Discount Rate
 
Weighted-average discount rate - finance leases
6.40
%
Weighted-average discount rate - operating leases
5.19
%
Minimum future lease payments under finance and operating leases with terms longer than one year are as follows:
At December 31, (In thousands)
 
 
 
Operating leases
Finance leases
2019
$
10,282

$
21,381

2020
13,261

24,988

2021
13,048

22,719

2022
13,031

13,707

2023
12,553

7,370

Thereafter
8,605

1,101

Total
$
70,780

$
91,266

Less: imputed interest
(9,114
)
(15,522
)
Net lease obligation
$
61,666

$
75,744


NOTE 8 – DEBT
 
March 31, 2019
 
December 31, 2018
In thousands
Current
 
Non-Current
 
Current
 
Non-Current
2024 Senior Notes, net(1)
$
—

 
$
246,045

 
$
—

 
$
245,854

Revolving Credit Facility(2)
—

 
135,000

 
—

 
135,000

Finance lease obligations
24,520

 
51,224

 
24,937

 
53,035

 
$
24,520

 
$
432,269

 
$
24,937

 
$
433,889

(1) Net of unamortized debt issuance costs of $4.0 million and $4.1 million at March 31, 2019 and December 31, 2018, respectively.
(2) Unamortized debt issuance costs of $2.2 million and $2.2 million at March 31, 2019 and December 31, 2018, respectively, included in Other Non-Current Assets.

2024 Senior Notes
In May 2017, the Company completed an offering of $250.0 million in aggregate principal amount of 2024 Senior Notes

12
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

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 $245.0 million. For more details, please see Note 18 -- Debt contained in the 2018 10-K.
Revolving Credit Facility
At March 31, 2019, the Company had $115.0 million available under its revolving credit facility (the “RCF”). At March 31, 2019, the interest rate of the RCF was 4.986%. Since inception, the Company has swapped $75.0 million of variable rate debt on the RCF to fixed rate debt through interest rate swap derivative instruments (see Note 13 -- Derivative Financial Instruments).
On April 30, 2019, the Company and Bank of America, N.A., as administrative agent for the RCF lenders, entered into the Second Amendment to Credit Agreement (the “Amendment”). Among other items, the Amendment (1) modifies the financial covenants to (A) provide greater flexibility under the consolidated net leverage ratio requirement through the September 30, 2019 test date, with the ratio returning to the original level as outlined in the RCF starting with the December 31, 2019 test date, and (B) include an additional financial covenant tied to senior secured leverage and (2) increases the interest rate on borrowings under the RCF by 0.75% during periods of elevated consolidated net leverage.
Finance Lease Obligations
From time to time, the Company acquires mining equipment and facilities under finance lease agreements. In the three months ended March 31, 2019, the Company entered into new lease financing arrangements primarily for mining equipment at Silvertip and Wharf . All capital lease obligations are recorded, upon lease inception, at the present value of future minimum lease payments. See Note 7 -- Leases for additional qualitative and quantitative disclosures related to finance leasing arrangements.
Interest Expense
 
Three Months Ended March 31,
In thousands
2019
 
2018
2024 Senior Notes
$
3,673

 
$
3,673

Revolving Credit Facility
1,853

 
1,152

Finance lease obligations
1,107

 
524

Amortization of debt issuance costs
342

 
325

Accretion of Silvertip contingent consideration
179

 
324

Other debt obligations
—


107

Capitalized interest
(700
)
 
(140
)
Total interest expense, net of capitalized interest
$
6,454

 
$
5,965



    






    



13
Coeur Mining, Inc. and Subsidiaries
Notes to Consolidated Financial Statements

NOTE 9 – RECLAMATION
Reclamation and mine closure costs are based principally on legal and regulatory requirements. Management estimates costs associated with reclamation of mining properties. On an ongoing basis, management evaluates its estimates and assumptions, and future expenditures could differ from current estimates.
Changes to the Company’s asset retirement obligations for its operating sites are as follows:
 
Three Months Ended March 31,
In thousands
2019
 
2018
Asset retirement obligation - Beginning
$
133,508

 
$
118,799

Accretion
2,895

 
2,545

Settlements
(662
)
 
(496
)
Asset retirement obligation - Ending
$
135,741

 
$
120,848

The Company accrued $2.1 million and $2.0 million at March 31, 2019 and December 31, 2018, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

NOTE 10 - INCOME AND MINING TAXES
The following table summarizes the components of Income and mining tax (expense) benefit for the three months ended March 31, 2019 and 2018 by significant jurisdiction:

 
Three Months Ended March 31,
 
2019
 
2018
In thousands
Income (loss) before tax
Tax (expense) benefit
 
Income (loss) before tax
Tax (expense) benefit
United States
$
(6,047
)
$
(2,162
)
 
$
1,187

$
517

Canada
(26,525
)
9,792

 
—

—

Mexico
(772
)
1,024

 
13,126

(13,222
)
Other jurisdictions
(208
)
4


(1,673
)
756

 
$
(33,552
)
$
8,658

 
$
12,640

$
(11,949
)
During the first quarter of 2019, the Company reported estimated income and mining tax benefit of approximately $8.7 million, resulting in an effective tax rate of 25.8%. This compares to income tax expense of $11.9 million for an effective tax rate of 94.5% during the first quarter of 2018. The comparability of the Company’s income and mining tax (expense) benefit and effective tax rate for the reported periods was impacted by multiple factors, primarily: (i) variations in our income before income taxes; (ii) geographic distribution of that income; (iii) foreign exchange rates; (iv) mining taxes and (v) the non-recognition of tax assets. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.
A valuation allowance is provided for deferred tax assets for which it is more likely than not that the related tax benefits will not be realized. The Company analyzes its deferred tax assets and, if it is determined that the Company will not realize all or a portion of its deferred tax assets, it will record or increase a valuation allowance. Conversely, if it is determined that the Company ultimately will be more likely than not able to realize all or a portion of the related benefits for which a valuation allowance has been provided, all or a portion of the related valuation allowance will be reduced. There are a number of factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see the section titled “Risk Factors” in the 2018 10-K.
The Company or one of its subsidiaries files income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The statute of limitations remains open from 2015 forward for the U.S. federal jurisdiction and from 2011 forward for certain other foreign jurisdictions. As a result of statutes of limitation that will begin to expire within the next twelve months in various jurisdictions and possible settlements of audit-related issues with taxing authorities in various jurisdictions with respect to which none of the issues are individually significant, the Company believes that it is reasonably possible that the total amount of its net unrecognized income tax benefits will decrease between $3.5 million and $4.5 million in the next twelve months.
At March 31, 2019 and December 31, 2018, the Company had $3.1 million and $3.8 million of total gross unrecognized tax benefits, respectively that, if recognized, would positively impact the Company’s effective income tax rate. The Company’s continuing practice is to recognize potential interest and/or penalties related to unrecognized tax benefits as part of its income tax

14
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

expense. At March 31, 2019 and December 31, 2018, the amount of accrued income-tax-related interest and penalties was $2.7 million and $3.7 million, respectively.

NOTE 11 – STOCK-BASED COMPENSATION
The Company has stock incentive plans for executives and eligible employees. Stock awards include performance shares, restricted stock and stock options. Stock-based compensation expense for the three months ended March 31, 2019 and 2018 was $2.2 million and $2.8 million, respectively. At March 31, 2019, there was $10.3 million of unrecognized stock-based compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.9 years.
The following table summarizes the grants awarded during the three months ended March 31, 2019:
Grant date
 
Restricted
stock
 
Grant date fair
value of
restricted stock
 
Performance
shares
 
Grant date fair
value of
performance
shares
February 5, 2019
 
435,173

 
$
5.08

 
628,943

 
$
5.54

February 19, 2019
 
854,058

 
$
5.17

 
80,850

 
$
5.54


NOTE 12 – FAIR VALUE MEASUREMENTS
 
Three Months Ended March 31,
In thousands
2019
 
2018
Unrealized gain (loss) on equity securities
$
9,185

 
$
4,842

Realized gain (loss) on equity securities
(8
)
 
(333
)
Zinc options
—

 
145

Interest rate swap, net
(57
)
 
—

Fair value adjustments, net
$
9,120

 
$
4,654

Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1), secondary priority to quoted prices in inactive markets or observable inputs (Level 2), and the lowest priority to unobservable inputs (Level 3).
The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis (at least annually) by level within the fair value hierarchy. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement:
 
Fair Value at March 31, 2019
In thousands
Total
 
Level 1
 
Level 2
 
Level 3  
Assets:
 
 
 
 
 
 
 
Equity securities
$
25,875

 
$
25,875

 
$
—

 
$
—

Other derivative instruments, net
$
553

 
—

 
553

 
—

 
$
26,428

 
$
25,875

 
$
553

 
$
—

Liabilities:
 
 
 
 
 
 
 
Silvertip contingent consideration
$
49,455

 
$
—

 
$
—

 
$
49,455

Other derivative instruments, net
$
112

 
—

 
112

 
—

 
$
49,567

 
$
—

 
$
112

 
$
49,455

 

15
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

 
Fair Value at December 31, 2018
In thousands
Total
 
Level 1
 
Level 2
 
Level 3  
Assets:
 
 
 
 
 
 
 
Equity and debt securities
$
17,806

 
$
15,589

 
$
—

 
$
2,217

Other derivative instruments, net
914

 
—

 
914

 
—

 
$
18,720

 
$
15,589

 
$
914

 
$
2,217

Liabilities:
 
 
 
 
 
 
 
Silvertip contingent consideration
$
49,276

 
$
—

 
$
—

 
$
49,276

Other derivative instruments, net
644

 
—

 
644

 
—

 
$
49,920

 
$
—

 
$
644

 
$
49,276

The Company’s investments in equity securities are recorded at fair market value in the financial statements based primarily on quoted market prices. Such instruments are classified within Level 1 of the fair value hierarchy. Quoted market prices are not available for certain debt securities; these securities are valued using pricing models, which require the use of observable and unobservable inputs, and are classified within Level 3 of the fair value hierarchy.
The Company’s other derivative instruments, net, include concentrate and certain doré sales contracts, zinc hedges, and an interest rate swap which are valued using pricing models with inputs derived from observable market data, including contractual terms, forward market prices, yield curves, credit spreads, and other unobservable inputs. The model inputs can generally be verified and do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
In July 2017, the Company sold the Endeavor Silver Stream and remaining non-core royalties to Metalla Royalty & Streaming Ltd. (“Metalla”) for total consideration of $13.0 million, including a $6.7 million convertible debenture. The convertible debenture was due to mature in June 30, 2027, however, through a combination of principal repayments and conversions into Metalla shares, the convertible debenture was extinguished in February 2019.
In October 2017, the Company acquired the Silvertip mine from shareholders of JDS Silver Holdings Ltd (the “Silvertip Acquisition”). The consideration for the Silvertip Acquisition includes two $25.0 million contingent payments, which are payable in cash and common stock upon reaching a future permitting milestone and resource declaration milestone, respectively. The fair value of the Silvertip contingent consideration is estimated based on an estimated discount rate of 2.5% for the contingent permitting payment and 2.9% for the contingent resource declaration payment and is classified within Level 3 of the fair value hierarchy.
No assets or liabilities were transferred between fair value levels in the three months ended March 31, 2019.
The following tables present the changes in the fair value of the Company's Level 3 financial assets and liabilities for the three months ended March 31, 2019:
 
Three Months Ended March 31, 2019
In thousands
Balance at the beginning of the period
 
Revaluation
 
Settlements
 
Accretion
 
Balance at the
end of the
period
Assets:
 
 
 
 
 
 
 
 
 
Equity and debt securities
$
2,217

 
$
59

 
$
(2,276
)
 
$
—

 
$
—

Liabilities:
 
 
 
 
 
 
 
 
 
Silvertip contingent consideration
$
49,276

 
$
—

 
$
—

 
$
179

 
$
49,455


16
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

The fair value of financial assets and liabilities carried at book value in the financial statements at March 31, 2019 and December 31, 2018 is presented in the following table:
 
March 31, 2019
In thousands
Book Value
 
Fair Value
 
Level 1
 
Level 2
 
Level 3  
Assets:
 
 
 
 
 
 
 
 
 
Manquiri Notes Receivable
$
1,982

 
$
1,982

 
$
—

 
$
—

 
$
1,982

Liabilities:
 
 

 
 
 
 
 
 
5.875% Senior Notes due 2024(1)
$
246,045

 
$
237,895

 
$
—

 
$
237,895

 
$
—

RCF(2)
$
135,000

 
$
135,000

 
$
—

 
$
135,000

 
$
—

(1) Net of unamortized debt issuance costs of $4.0 million.
(2) Unamortized debt issuance costs of $2.2 million included in Other Non-Current Assets.
 
December 31, 2018
In thousands
Book Value
 
Fair Value
 
Level 1
 
Level 2
 
Level 3  
Assets:
 
 
 
 
 
 
 
 
 
Manquiri Notes Receivable
$
5,487

 
$
5,487

 
$
—

 
$
—

 
$
5,487

Liabilities:
 
 
 
 
 
 
 
 
 
5.875% Senior Notes due 2024(1)
$
245,854

 
$
220,446

 
$
—

 
$
220,446

 
$
—

RCF(2)
$
135,000

 
$
135,000

 
$
—

 
$
135,000

 
$
—

(1) Net of unamortized debt issuance costs of $4.1 million.
(2) Unamortized debt issuance costs of $2.2 million included in Other Non-Current Assets.
The fair value of the Manquiri Notes Receivable (as defined below) was determined using a discounted cash flow model using a 12% discount rate which takes into consideration the increased credit risk and short duration of the Manquiri Notes Receivable. The fair value is estimated based on observable and unobservable data including yield curves and credit spreads, therefore, the Company classifies the Manquiri Notes Receivable in Level 3 of the fair value hierarchy; see Note 18 -- Discontinued Operations for additional detail.
The fair value of the 5.875% Senior Notes due 2024 (the “2024 Senior Notes”) was estimated using quoted market prices. The fair value of the RCF approximates book value as the liability is secured, has a variable interest rate, and lacks significant credit concerns.

NOTE 13 – DERIVATIVE FINANCIAL INSTRUMENTS
Provisional Metal Sales
The Company enters into sales contracts with third-party smelters, refiners and off-take customers which, in some cases, provide for a provisional payment based upon preliminary assays and quoted metal prices. The provisionally priced sales contracts contain an embedded derivative that is required to be separated from the host contract for accounting purposes. The host contract is the receivable recorded at the forward price at the time of sale. The embedded derivatives do not qualify for hedge accounting and are marked to market through earnings each period until final settlement.
Interest Rate Swap
The Company is a party to two interest rate swap contracts in which it will receive variable-rate interest and pay fixed-rate interest. The Company uses these instruments to manage its exposure to changes in interest rates related to its RCF (see Note 8-- Debt). The interest rate swap derivative instruments are not designated as hedges from an accounting standpoint and hedge accounting is not applied. The notional amount is used to measure interest to be paid or received. The first interest rate swap derivative instrument, with a notional amount of $50.0 million, became effective June 2018 and covers a contractual term of twelve months and net settles monthly. The second interest rate swap derivative instrument, with a notional amount of $75.0 million, will become effective June 2019 and covers a contractual term of six months and net settles monthly.

17
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

At March 31, 2019, the Company had the following derivative instruments that settle as follows:
In thousands except average prices and notional ounces
2019
 
Thereafter
Provisional silver sales contracts
$
5,712

 
$
—

Average silver price per ounce
$
15.11

 
$
—

Notional ounces
378,139

 
—

 
 
 
 
Provisional gold sales contracts
$
10,657

 
$
—

Average gold price per ounce
$
1,303

 
$
—

Notional ounces
8,178

 
—

 
 
 
 
Provisional zinc sales contracts
$
11,581

 
$
—

Average zinc price per pound
$
1.27

 
$
—

Notional pounds
9,099,116

 
—

 
 
 
 
Provisional lead sales contracts
$
4,234

 
$
—

Average lead price per pound
$
0.91

 
$
—

Notional pounds
4,648,252

 
—

 
 
 
 
Fixed interest rate swap payable
$
323


$
—

Fixed Interest rate
2.46
%
 
—

Notional dollars
$
50,000

 
$
—

 
 
 
 
Variable interest rate swap receivable
$
326

 
$
—

Average variable interest rate
2.49
%
 
$
—

Notional dollars
$
50,000

 
$
—

 
 
 
 
Fixed interest rate swap payable
$
960

 
$
—

Fixed Interest rate
2.50
%
 
—

Notional dollars
$
75,000

 
$
—

 
 
 
 
Variable interest rate swap receivable
$
911

 
$
—

Average variable interest rate
2.49
%
 
$
—

Notional dollars
$
75,000

 
$
—

The following summarizes the classification of the fair value of the derivative instruments:
 
March 31, 2019
In thousands
Prepaid expenses and other
 
Accrued liabilities and other
Provisional metal sales contracts
$
550

 
$
161

Interest rate swaps
3

 
(49
)
 
$
553

 
$
112

 
December 31, 2018
In thousands
Prepaid expenses and other
 
Accrued liabilities and other
Provisional metal sales contracts
$
784

 
$
644

Zinc options
113

 
—

Interest rate swaps
17

 
—

 
$
914

 
$
644


18
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

The following represent mark-to-market gains (losses) on derivative instruments for the three months ended March 31, 2019 and 2018, respectively (in thousands):
 
 
Three Months Ended March 31,
Financial statement line
Derivative
2019
 
2018
Revenue
Provisional metal sales contracts
$
250

 
$
253

Fair value adjustments, net
Zinc options
—

 
145

Fair value adjustments, net
Interest rate swaps
(46
)
 
—

 
 
$
204

 
$
398

Credit Risk
The credit risk exposure related to any derivative instrument is limited to the unrealized gains, if any, on outstanding contracts based on current market prices. To reduce counter-party credit exposure, the Company enters into contracts with institutions management deems credit-worthy and limits credit exposure to each institution. The Company does not anticipate non-performance by any of its counterparties.

NOTE 14 - OTHER, NET
Other, net consists of the following:
 
Three Months Ended March 31,
In thousands
2019
 
2018
Foreign exchange gain (loss)
$
(665
)
 
$
(670
)
Interest income on notes receivable
180

 
249

Gain (loss) on sale of assets and investments
52

 
(241
)
Other
493

 
1,175

Other, net
$
60

 
$
513



19
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

NOTE 15 – NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock.
For the three months ended March 31, 2019 and 2018, 2,593,294 and 496,064 common stock equivalents, respectively, related to equity-based awards were not included in the diluted earnings per share calculation as the shares would be antidilutive.
 
Three Months Ended March 31,
In thousands except per share amounts
2019
 
2018
Net income (loss) available to common stockholders:
 
 
 
Income (loss) from continuing operations
$
(24,894
)
 
$
691

Income (loss) from discontinued operations
5,693

 
550

 
$
(19,201
)
 
$
1,241

 
 
 
 
Weighted average shares:
 
 
 
Basic
202,422

 
184,367

Effect of stock-based compensation plans
—

 
3,254

Diluted
202,422


187,621

 
 
 
 
Basic income (loss) per share:
 
 
 
Income (loss) from continuing operations
$
(0.12
)
 
$
0.00

Income (loss) from discontinued operations
0.03

 
0.00

Basic(1)
$
(0.09
)

$
0.01

 
 
 
 
Diluted income (loss) per share:
 
 
 
Income (loss) from continuing operations
$
(0.12
)
 
$
0.00

Income (loss) from discontinued operations
0.03

 
0.00

Diluted(1)
$
(0.09
)

$
0.01

(1) Due to rounding, the sum of net income per share from continuing operations and discontinued operations may not equal net income per share.

NOTE 16 - SUPPLEMENTAL GUARANTOR INFORMATION
The following Consolidating Financial Statements are presented to satisfy disclosure requirements of Rule 3-10 of Regulation S-X resulting from the guarantees by Coeur Alaska, Inc., Coeur Explorations, Inc., Coeur Rochester, Inc., Coeur South America Corp., Wharf Resources (U.S.A.), Inc. and its subsidiaries, and Coeur Capital, Inc. (collectively, the “Subsidiary Guarantors”) of the 2024 Senior Notes. The following schedules present Consolidating Financial Statements of (a) Coeur, the parent company; (b) the Subsidiary Guarantors; and (c) certain wholly-owned domestic and foreign subsidiaries of the Company (collectively, the “Non-Guarantor Subsidiaries”). Each of the Subsidiary Guarantors is 100% owned by Coeur and the guarantees are full and unconditional and joint and several obligations. There are no restrictions on the ability of Coeur to obtain funds from the Subsidiary Guarantors by dividend or loan.
        

20
Coeur Mining, Inc. and Subsidiaries
Notes to Condensed Consolidated Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEET
MARCH 31, 2019
In thousands
Coeur Mining, Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
ASSETS
 
 
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
10,185

 
$
10,488

 
$
48,360

 
$
—

 
$
69,033

Receivables
1,915

 
7,932

 
23,683

 
—

 
33,530

Ore on leach pads
—

 
74,517

 
—

 
—

 
74,517

Inventory
—

 
26,963