The following Management's Discussion and Analysis ("MD&A") provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations ofCoeur Mining, Inc. and its subsidiaries (collectively the "Company", "our", or "we"). We use certain non-GAAP financial performance measures in our MD&A. For a detailed description of these measures, please see "Non-GAAP Financial Performance Measures" at the end of this Item. We provide Costs applicable to sales ("CAS") split, referred to as the co-product method, based on revenue contribution for Palmarejo,Rochester and Silvertip and based on the primary metal, referred to as the by-product method, for Wharf. Revenue from secondary metal, such as silver at Wharf, is treated as a cost credit. Overview We are primarily a gold and silver producer with five mines located inthe United States ,Mexico andCanada and several exploration projects inNorth America . Second Quarter Highlights For the quarter, Coeur reported revenue of$214.9 million and cash flow from operating activities of$58.1 million . We reported GAAP net income of$32.1 million , or$0.13 per diluted share. On an adjusted basis1, the Company reported EBITDA of$52.7 million and net loss of$0.8 million , or$0.00 per diluted share. For the six months endedJune 30, 2021 , Coeur reported revenue of$417.0 million and cash flow from operating activities of$53.7 million . We reported GAAP net income of$34.2 million , or$0.14 per diluted share. On an adjusted basis1, the Company reported EBITDA of$118.6 million and net income of$13.1 million or$0.05 per diluted share. •Quarterly revenue and cash flow growth - Revenue increased 6% quarter-over-quarter and 39% year-over-year due to higher gold and silver ounces sold and a higher average realized silver price. Operating cash flow improved by$62.4 million quarter-over-quarter and$48.1 million year-over-year to$58.1 million •Higher quarterly production and stronger expected second half - Gold production increased 2% quarter-over-quarter to 87,275 ounces led by a 27% improvement at Wharf, while silver production of 2.6 million ounces was 8% higher largely due to a 15% increase atRochester . Year-over-year, gold and silver production increased 12% and 60%, respectively, driven by increases at Palmarejo andRochester . Production levels are expected to continue climbing in the second half of the year and be within the Company's full-year guidance of 322,500 - 367,500 ounces of gold and 9.7 - 12.2 million ounces of silver •New quarterly drilling record from largest exploration campaign in Company history - A new quarterly record was achieved during the period with the completion of approximately 320,400 feet (97,675 meters) of drilling and 27 currently active drill rigs. Investment in exploration totaled approximately$18.6 million ($12.4 million expensed and$6.2 million capitalized) in the quarter with significant increases in drilling activity at Palmarejo andRochester as well as the Crown district in southernNevada •Rochester expansion progressing according to schedule - Coeur advanced major construction on the Plan of Operations Amendment 11 ("POA 11") expansion atRochester on schedule, with solid ongoing environmental and safety performance. Placement of over-liner material on the new Stage VI leach pad commenced approximately six weeks ahead of schedule, and concrete foundation work for the Merrill-Crowe process plant and crusher corridor is scheduled to begin in the third quarter. Overall project progress was approximately 31% complete at the end of the second quarter •Accelerating investment at Silvertip based on positive results - The Company is increasing its investment at Silvertip during the second half of 2021 to complete several surface projects to support a potential restart of active mining and processing activities in 2023 •Strategic investment in Victoria - Coeur acquired a 17.8% ownership interest in Victoria Gold Corp. ("Victoria") during the second quarter for consideration of approximately$118.8 million . Victoria owns and operates the new open pit, heap leach Eagle gold mine located in centralYukon Territory, Canada . The investment is consistent with the Company's strategy and complements its existing portfolio of gold and silver assets located in high-quality jurisdictions 31
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