10-Q
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, 2016
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
____________________________________________ 
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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files.)    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
þ
Accelerated filer
 
 ¨   
 
 
 
 
Non-accelerated filer
 
 ¨   
Smaller reporting company
 
 ¨   
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 153,159,415 shares were issued and outstanding as of April 25, 2016.


COEUR MINING, INC.
INDEX
 
 
Page
Part I.
 
 
 
 
 
 
 
 
 
 
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
 
 
 
 
Condensed Consolidated Statements of Cash Flows (Unaudited)
 
 
 
 
Condensed Consolidated Balance Sheets
 
 
 
 
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 6. Exhibits
 
 
 
Signatures



2

PART I
Item 1.        Financial Statements
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
 
 
 
Three months ended March 31,
 
 
2016
 
2015
 
Notes
In thousands, except share data
Revenue
3
$
148,387

 
$
152,956

COSTS AND EXPENSES
 
 
 
 
Costs applicable to sales(1)
3
101,555

 
115,062

Amortization
 
27,964

 
33,090

General and administrative
 
8,276

 
8,834

Exploration
 
1,731

 
4,266

Write-downs
 
4,446

 
—

Pre-development, reclamation, and other
 
4,204

 
6,763

Total costs and expenses
 
148,176

 
168,015

OTHER INCOME (EXPENSE), NET
 
 
 
 
Fair value adjustments, net
10
(8,695
)
 
(4,884
)
Interest expense, net of capitalized interest
18
(11,120
)
 
(10,765
)
Other, net
7
1,314

 
(2,511
)
Total other income (expense), net
 
(18,501
)
 
(18,160
)
Income (loss) before income and mining taxes
 
(18,290
)
 
(33,219
)
Income and mining tax (expense) benefit
8
(2,106
)
 
(68
)
NET INCOME (LOSS)
 
$
(20,396
)
 
$
(33,287
)
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
 
 
 
 
Unrealized gain (loss) on equity securities, net of tax of $(1,011) and $578 for the three months ended March 31, 2016 and 2015, respectively
 
1,043

 
(915
)
Reclassification adjustments for impairment of equity securities, net of tax of $(586) for the three months ended March 31, 2015
 
—

 
928

Reclassification adjustments for realized loss on sale of equity securities
 
588

 
—

Other comprehensive income (loss)
 
1,631

 
13

COMPREHENSIVE INCOME (LOSS)
 
$
(18,765
)
 
$
(33,274
)
 
 
 
 
 
NET INCOME (LOSS) PER SHARE
9
 
 
 
Basic
 
$
(0.14
)
 
$
(0.32
)
 
 
 
 
 
Diluted
 
$
(0.14
)
 
$
(0.32
)
(1) Excludes amortization.
The accompanying notes are an integral part of these consolidated financial statements.


3

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 
 
 
Three months ended March 31,
 
 
 
2016
 
2015
 
Notes
 
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
Net income (loss)
 
 
$
(20,396
)
 
(33,287
)
Adjustments:
 
 

 
 
Amortization
 
 
27,964

 
33,090

Accretion
 
 
3,169

 
3,150

Deferred income taxes
 
 
(2,105
)
 
(2,184
)
Fair value adjustments, net
10
 
8,695

 
4,884

Stock-based compensation
5
 
2,915

 
2,150

Impairment of equity securities
13
 
—

 
1,514

Write-downs
 
 
4,446

 
—

Other
 
 
(1,435
)
 
1,079

Changes in operating assets and liabilities:
 
 

 
 
Receivables
 
 
3,481

 
2,556

Prepaid expenses and other current assets
 
 
1,279

 
(1,327
)
Inventory and ore on leach pads
 
 
(7,822
)
 
684

Accounts payable and accrued liabilities
 
 
(13,574
)
 
(15,758
)
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
 
 
6,617

 
(3,449
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
Capital expenditures
 
 
(22,172
)
 
(17,620
)
Acquisitions, net
12
 
—

 
(102,018
)
Other
 
 
2,536

 
(1,730
)
Purchase of investments
 
 
(7
)
 
(278
)
Sales and maturities of investments
 
 
997

 
229

CASH USED IN INVESTING ACTIVITIES
 
 
(18,646
)
 
(121,417
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
Issuance of notes and bank borrowings
18
 
—

 
53,500

Payments on debt, capital leases, and associated costs
 
 
(5,971
)
 
(8,594
)
Gold production royalty payments
 
 
(9,131
)
 
(10,368
)
Other
 
 
(280
)
 
(423
)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
 
 
(15,382
)
 
34,115

Effect of exchange rate changes on cash and cash equivalents
 
 
86

 
(523
)
DECREASE IN CASH AND CASH EQUIVALENTS
 
 
(27,325
)
 
(91,274
)
Cash and cash equivalents at beginning of period
 
 
200,714

 
270,861

Cash and cash equivalents at end of period
 
 
$
173,389

 
$
179,587


The accompanying notes are an integral part of these consolidated financial statements.

4

COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
March 31, 2016 (Unaudited)
 
December 31,
2015
ASSETS
Notes
 
In thousands, except share data
CURRENT ASSETS
 
 
 
 
 
Cash and cash equivalents
 
 
$
173,389

 
$
200,714

Receivables
14
 
82,929

 
85,992

Inventory
15
 
78,597

 
81,711

Ore on leach pads
15
 
72,703

 
67,329

Prepaid expenses and other
 
 
13,130

 
10,942

 
 
 
420,748

 
446,688

NON-CURRENT ASSETS
 
 
 
 
 
Property, plant and equipment, net
16
 
220,948

 
195,999

Mining properties, net
17
 
574,104

 
589,219

Ore on leach pads
15
 
49,294

 
44,582

Restricted assets
 
 
13,221

 
11,633

Equity securities
13
 
5,530

 
2,766

Receivables
14
 
24,114

 
24,768

Deferred tax assets

 
2,750

 
1,942

Other
 
 
14,389

 
14,892

TOTAL ASSETS
 
 
$
1,325,098

 
$
1,332,489

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
CURRENT LIABILITIES
 
 
 
 
 
Accounts payable
 
 
$
46,955

 
$
48,732

Accrued liabilities and other
 
 
42,037

 
53,953

Debt
18
 
16,801

 
10,431

Royalty obligations
10
 
21,183

 
24,893

Reclamation
4
 
3,463

 
2,071

 
 
 
130,439

 
140,080

NON-CURRENT LIABILITIES
 
 
 
 
 
Debt
18
 
494,300

 
479,979

Royalty obligations
10
 
6,354

 
4,864

Reclamation
4
 
83,902

 
83,197

Deferred tax liabilities

 
146,845

 
147,132

Other long-term liabilities
 
 
58,118

 
55,761

 
 
 
789,519

 
770,933

STOCKHOLDERS’ EQUITY
 
 
 
 
 
Common stock, par value $0.01 per share; authorized 300,000,000 shares, issued and outstanding 153,240,428 at March 31, 2016 and 151,339,136 at December 31, 2015
 
 
1,532

 
1,513

Additional paid-in capital
 
 
3,026,871

 
3,024,461

Accumulated other comprehensive income (loss)
 
 
(2,091
)
 
(3,722
)
Accumulated deficit
 
 
(2,621,172
)
 
(2,600,776
)
 
 
 
405,140

 
421,476

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
$
1,325,098

 
$
1,332,489


The accompanying notes are an integral part of these 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, 2015
151,339

 
$
1,513

 
$
3,024,461

 
$
(2,600,776
)
 
$
(3,722
)
 
$
421,476

Net income (loss)
—

 
—

 
—

 
(20,396
)
 
—

 
(20,396
)
Other comprehensive income (loss)
—

 
—

 
—

 
—

 
1,631

 
1,631

Common stock issued under stock-based compensation plans, net
1,901

 
19

 
2,410

 
—

 
—

 
2,429

Balances at March 31, 2016 (Unaudited)
153,240

 
$
1,532

 
$
3,026,871

 
$
(2,621,172
)
 
$
(2,091
)
 
$
405,140

The accompanying notes are an integral part of these 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, 2016. The condensed consolidated December 31, 2015 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, 2015.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Recent Accounting Standards
In March 2016, the FASB issued ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting," which amends several aspects of the accounting for share-based payment transaction, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. These changes become effective for the Company's fiscal year beginning January 1, 2018. The Company is currently evaluating the potential impact of implementing these changes on the Company's consolidated financial position, results of operations, and cash flows.

In February 2016, the FASB issued ASU 2016-02, "Leases," which will require lessees to recognize assets and liabilities for the rights and obligations created by most leases on the balance sheet. These changes become effective for the Company's fiscal year beginning January 1, 2019. Modified retrospective adoption for all leases existing at, or entered into after, the date of initial application, is required with an option to use certain transition relief. The Company is currently evaluating the potential impact of implementing these changes on the Company's consolidated financial position, results of operations, and cash flows.

In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes," which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as non-current. The updated guidance became effective under early adoption for the Company's fiscal year beginning January 1, 2015, and resulted in a reclassification of amounts from Current deferred tax assets to Non-current deferred tax assets and Current deferred tax liabilities to Non-current deferred tax liabilities in the current and prior periods.
    
In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," which eliminates the requirement for an acquirer to retrospectively adjust the financial statements for measurement-period adjustments that occur in periods after a business combination is consummated. These changes become effective for the Company's fiscal year beginning January 1, 2016. The Company's adoption had no impact on the Company's consolidated financial position, results of operations, and cash flows.
    
In August 2015, the FASB issued ASU 2015-14, "Deferral of the Effective Date", which defers the effective date of ASU 2014-09, "Revenue from Contracts with Customers" to January 1, 2018. The Company is currently evaluating the potential impact of adopting the prescribed changes on the Company's consolidated financial position, results of operations, and cash flows.    

In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory," which provides a revised, simpler measurement for inventory to be measured at the lower of cost and net realizable value. These changes become effective for the Company's fiscal year beginning January 1, 2018. The Company is currently evaluating the potential impact of implementing these changes on the Company's consolidated financial position, results of operations, and cash flows.

In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which requires that debt issuance costs related to a recognized debt liability be presented as a reduction to the carrying amount of that debt liability, not as an asset. The updated guidance became effective under early adoption for the Company's fiscal year beginning January 1, 2015, and resulted in a reclassification of amounts from Other Non-current Assets to Debt in the current and prior periods.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis," which amends the consolidation requirements in ASC 810. These changes become effective for the Company's fiscal year beginning January 1, 2016. The Company's adoption had no impact on the Company's consolidated financial position, results of operations, and cash flows.


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, Rochester, Kensington, Wharf, and San Bartolomé mines, and Coeur Capital. All operating segments are engaged in the discovery and mining of gold and silver and generate the majority of their revenues from the sale of these precious metals with the exception of Coeur Capital, which holds the Endeavor silver stream and other precious metals royalties. Other includes the La Preciosa project, Joaquin project, Martha mine, 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, 2016
Palmarejo
 
Rochester
 
Kensington
 
Wharf
 
San Bartolomé
 
Coeur Capital
 
Other
 
Total
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Metal sales
$
29,813

 
$
29,982

 
$
35,743

 
$
27,929

 
$
21,278

 
$
1,891

 
$
—

 
$
146,636

Royalties
—

 
—

 
—

 
—

 
—

 
1,751

 
—

 
1,751

 
29,813

 
29,982

 
35,743

 
27,929

 
21,278

 
3,642

 
—

 
148,387

Costs and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs applicable to sales(1)
21,038

 
22,485

 
24,418

 
15,461

 
17,497

 
656

 
—

 
101,555

Amortization
7,289

 
5,313

 
8,349

 
4,051

 
1,754

 
781

 
427

 
27,964

Exploration
801

 
109

 
(47
)
 
—

 
—

 
121

 
747

 
1,731

Write-downs
—

 
—

 
—

 
—

 
—

 
4,446

 
—

 
4,446

Other operating expenses
315

 
681

 
252

 
493

 
291

 
137

 
10,311

 
12,480

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value adjustments, net
(4,864
)
 
(2,249
)
 
—

 
—

 
—

 
—

 
(1,582
)
 
(8,695
)
Interest expense, net
(734
)
 
(171
)
 
(43
)
 
—

 
(3
)
 
—

 
(10,169
)
 
(11,120
)
Other, net
(1,235
)
 
3

 
(20
)
 
10

 
315

 
2,282

 
(41
)
 
1,314

Income and mining tax (expense) benefit
98

 
(423
)
 
—

 
116

 
(1,571
)
 
(1,292
)
 
966

 
(2,106
)
Net income (loss)
$
(6,365
)
 
$
(1,446
)
 
$
2,708

 
$
8,050

 
$
477

 
$
(1,509
)
 
$
(22,311
)
 
$
(20,396
)
Segment assets(2)
$
422,086

 
$
209,692

 
$
192,805

 
$
113,383

 
$
87,750

 
$
17,863

 
$
74,361

 
$
1,117,940

Capital expenditures
$
8,815

 
$
3,289

 
$
8,090

 
$
1,410

 
$
521

 
$
—

 
$
47

 
$
22,172

(1) Excludes amortization
(2) Segment assets include receivables, prepaids, inventories, property, plant and equipment, and mineral interests
Three months ended March 31, 2015
Palmarejo
 
Rochester
 
Kensington
 
Wharf
 
San Bartolomé
 
Coeur Capital
 
Other
 
Total
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Metal sales
$
39,394

 
$
44,031

 
$
44,038

 
$
—

 
$
21,548

 
$
1,945

 
$
—

 
$
150,956

Royalties
—

 
—

 
—

 
—

 
—

 
2,000

 
—

 
2,000

 
39,394

 
44,031

 
44,038

 
—

 
21,548

 
3,945

 
—

 
152,956

Costs and Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Costs applicable to sales(1)
34,491

 
31,392

 
29,419

 
—

 
19,127

 
633

 
—

 
115,062

Amortization
7,333

 
6,843

 
11,554

 
—

 
4,691

 
2,151

 
518

 
33,090

Exploration
1,123

 
722

 
1,662

 
—

 
36

 
75

 
648

 
4,266

Write-downs
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other operating expenses
314

 
1,141

 
235

 
165

 
244

 
17

 
13,481

 
15,597

Other income (expense)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value adjustments, net
(1,545
)
 
(2,292
)
 
—

 
—

 
—

 
—

 
(1,047
)
 
(4,884
)
Interest expense, net
(1,340
)
 
(225
)
 
(63
)
 
—

 
(281
)
 
—

 
(8,856
)
 
(10,765
)
Other, net
(1,103
)
 
(41
)
 
(4
)
 
17

 
452

 
(1,525
)
 
(307
)
 
(2,511
)
Income and mining tax (expense) benefit
(1,371
)
 
(350
)
 
—

 
686

 
(1,407
)
 
598

 
1,776

 
(68
)
Net income (loss)
$
(9,226
)
 
$
1,025

 
$
1,101

 
$
538

 
$
(3,786
)
 
$
142

 
$
(23,081
)
 
$
(33,287
)
Segment assets(2)
$
346,250

 
$
188,419

 
$
205,208

 
$
142,527

 
$
179,638

 
$
57,930

 
$
80,181

 
$
1,200,153

Capital expenditures
$
9,184

 
$
3,255

 
$
4,144

 
$
51

 
$
949

 
$
—

 
$
37

 
$
17,620

(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


Assets
March 31, 2016

December 31, 2015
Total assets for reportable segments
$
1,117,940

 
$
1,103,310

Cash and cash equivalents
173,389

 
200,714

Other assets
33,769

 
28,465

Total consolidated assets
$
1,325,098

 
$
1,332,489


Geographic Information
Long-Lived Assets
March 31, 2016

December 31, 2015
Mexico
$
397,406

 
$
390,694

United States
347,021

 
336,210

Bolivia
33,519

 
35,201

Australia
3,317

 
5,952

Argentina
10,843

 
10,871

Other
5,066

 
9,058

Total
$
797,172

 
$
787,986

 

Revenue
 
Three months ended March 31,
 
2016
 
2015
United States
 
$
93,654

 
$
88,069

Mexico
 
30,522

 
40,141

Bolivia
 
21,278

 
21,548

Australia
 
1,891

 
1,945

Other
 
1,042

 
1,253

Total
 
$
148,387

 
$
152,956



NOTE 4 – 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 operating sites are as follows:
 
Three months ended March 31,
In thousands
2016
 
2015
Asset retirement obligation - Beginning
$
82,072

 
$
67,214

Accretion
1,960

 
1,412

Additions and changes in estimates
251

 
18,292

Settlements
(309
)
 
(859
)
Asset retirement obligation - Ending
$
83,974

 
$
86,059

The Company has accrued $3.4 million and $3.2 million at March 31, 2016 and December 31, 2015, respectively, for reclamation liabilities related to former mining activities, which are included in Reclamation.

NOTE 5 – STOCK-BASED COMPENSATION
The Company has stock incentive plans for executives and eligible employees. Stock awards include stock options, restricted stock, and performance shares. Stock-based compensation expense for the three months ended March 31, 2016 and 2015 was $2.9 million and $2.2 million, respectively. At March 31, 2016, there was $11.3 million of unrecognized stock-based

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

compensation cost which is expected to be recognized over a weighted-average remaining vesting period of 1.7 years. During the three months ended March 31, 2016, the supplemental incentive accrual increased $0.2 million to $1.4 million.

The following table summarizes the grants awarded during the three months ended March 31, 2016:
Grant date
 
Restricted
stock
 
Grant date fair
value of
restricted stock
 
Stock options
 
Grant date
fair value of
stock
options
 
Performance
shares
 
Grant date fair
value of
performance
shares
January 20, 2016
 
1,030,833

 
$
1.81

 
165,479

 
$
0.86

 
1,428,314

 
$
2.92

March 21, 2016
 
685,633

 
$
5.76

 
17,772

 
$
2.84

 
8,763

 
$
4.90


The following options and stock appreciation rights were exercisable during the three months ended March 31, 2016:
Award Type
 
Number of 
Exercised Units
 
Weighted Average
Exercised Price
 
Number of Exercisable Units
 
Weighted Average
Exercisable Price
Stock options
 
—

 
$
—

 
348,279

 
$
17.68

Stock appreciation rights
 
—

 
$
—

 
46,572

 
$
14.06



NOTE 6 – RETIREMENT SAVINGS PLAN
The Company has a 401(k) retirement savings plan that covers all eligible U.S. employees. Eligible employees may elect to contribute up to 75% of base salary, subject to ERISA limitations. In addition, the Company has a deferred compensation plan for employees whose benefits under the 401(k) plan are limited by federal regulations. The Company generally makes matching contributions equal to 100% of the employee’s contribution up to 4% of the employee's salary. The Company may also provide an additional contribution based on an eligible employee's salary. Total plan expenses recognized for the three months ended March 31, 2016 and 2015 were $1.0 million and $1.6 million, respectively.

NOTE 7 - OTHER, NET

Other, net consists of the following:
 
 
Three months ended March 31,
In thousands
 
2016
 
2015
Impairment of equity securities
 
$
—

 
$
(1,514
)
Foreign exchange gain (loss)
 
(164
)
 
(2,206
)
Gain (loss) on sale of assets
 
1,673

 
(44
)
Other
 
(195
)
 
1,253

Other, net
 
$
1,314

 
$
(2,511
)

NOTE 8 – INCOME AND MINING TAXES
The following table summarizes the components of Income and mining tax (expense) benefit for the three months ended March 31, 2016 and 2015 by significant jurisdiction:
 
Three months ended March 31,
 
2016
 
2015
In thousands
Income (loss) before tax
Tax (expense) benefit
 
Income (loss) before tax
Tax (expense) benefit
United States
$
(9,361
)
$
(532
)
 
$
(20,707
)
$
1,886

Argentina
(1,015
)
1,543

 
(696
)
(1
)
Mexico
(7,509
)
17

 
(9,672
)
(1,264
)
Bolivia
2,047

(1,570
)
 
(2,379
)
(1,407
)
Other jurisdictions
(2,452
)
(1,564
)
 
235

718

 
$
(18,290
)
$
(2,106
)
 
$
(33,219
)
$
(68
)

The Company’s effective tax rate is impacted by recurring items, such as foreign exchange rates on deferred tax balances, mining tax expense and uncertain tax position accruals, and the full valuation allowance on the deferred tax assets relating to

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

losses in the United States and certain foreign jurisdictions. In addition, the Company's consolidated effective income tax rate is a function of the combined effective tax rates and foreign exchange rates in the jurisdictions in which it operates. Variations in the jurisdictional mix of income and loss and foreign exchange rates result in significant fluctuations in our consolidated effective tax rate.

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. Each quarter, 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 will ultimately 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 risk factors that could impact the Company’s ability to realize its deferred tax assets. For additional information, see Part II, Item 1A of this Report.
    
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 2012 forward for the U.S. federal jurisdiction and from 2008 forward for certain other foreign jurisdictions. As a result of statutes of limitation that will begin to expire within the next 12 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 $1.0 million and $1.5 million in the next 12 months.

At March 31, 2016 and December 31, 2015, the Company had $18.9 million and $17.9 million of total gross unrecognized tax benefits, respectively. If recognized, these unrecognized tax benefits 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 expense. At March 31, 2016 and December 31, 2015, the amount of accrued income-tax-related interest and penalties was $11.3 million and $9.2 million, respectively.

NOTE 9 – 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, 2016 and 2015, 3,321,424 and 1,302,777 shares, respectively, of common stock equivalents related to equity-based awards were not included in the diluted per share calculation as the shares would be antidilutive.
The 3.25% Convertible Senior Notes ("Convertible Notes") were not included in the computation of diluted net income (loss) per share for the three months ended March 31, 2016 and 2015 because there is no excess value upon conversion over the principal amount of the Convertible Notes.
 
Three months ended March 31,
In thousands except per share amounts
2016
 
2015
Net income (loss) available to common stockholders
$
(20,396
)
 
$
(33,287
)
Weighted average shares:
 
 
 
Basic
150,249

 
102,580

Effect of stock-based compensation plans
—

 
—

Diluted
150,249

 
102,580

Income (loss) per share:
 
 
 
Basic
$
(0.14
)
 
$
(0.32
)
Diluted
$
(0.14
)
 
$
(0.32
)


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

NOTE 10 – FAIR VALUE MEASUREMENTS
 
 
Three months ended March 31,
In thousands
 
2016
 
2015
Palmarejo royalty obligation embedded derivative
 
$
(4,878
)
 
$
(1,545
)
Rochester net smelter returns ("NSR") royalty obligation
 
(2,249
)
 
(2,293
)
Silver and gold options
 
(1,568
)
 
(1,046
)
Fair value adjustments, net
 
$
(8,695
)
 
$
(4,884
)
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, 2016
In thousands
Total
 
Level 1
 
Level 2
 
Level 3  
Assets:
 
 
 
 
 
 
 
Equity securities
$
5,530

 
$
5,523

 
$
—

 
$
7

Silver and gold options
131

 
—

 
131

 
—

Other derivative instruments, net
57

 
—

 
57

 
—

 
$
5,718

 
$
5,523

 
$
188

 
$
7

Liabilities:
 
 
 
 
 
 
 
Palmarejo royalty obligation embedded derivative
$
6,827

 
$
—

 
$
—

 
$
6,827

Rochester NSR royalty obligation
10,877

 
—

 
—

 
10,877

Silver and gold options
36

 
—

 
36

 
—

 
$
17,740

 
$
—

 
$
36

 
$
17,704

 
 
Fair Value at December 31, 2015
In thousands
Total
 
Level 1
 
Level 2
 
Level 3  
Assets:
 
 
 
 
 
 
 
Equity securities
$
2,766

 
$
2,756

 
$
—

 
$
10

Liabilities:
 
 
 
 
 
 
 
Palmarejo royalty obligation embedded derivative
$
4,957

 
$
—

 
$
—

 
$
4,957

Rochester NSR royalty obligation
9,593

 
—

 
—

 
9,593

Other derivative instruments, net
508

 
—

 
508

 
—

 
$
15,058

 
$
—

 
$
508

 
$
14,550

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 equity 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 silver and gold options and other derivative instruments, net, which relate to concentrate and certain doré sales contracts and foreign exchange contracts, are valued using pricing models, which require inputs that are 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.
The fair values of the Palmarejo royalty obligation embedded derivative and Rochester NSR royalty obligation were estimated based on observable market data including contractual terms, forward silver and gold prices, yield curves, and credit spreads, as well as the Company’s current mine plan which is considered a significant unobservable input. Therefore, the Company has classified these obligations as Level 3 financial liabilities. Based on current mine plans, expected royalty durations of 0.4

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

years and 2.3 years were used to estimate the fair value of the Palmarejo royalty obligation embedded derivative and Rochester NSR royalty obligation, respectively, at March 31, 2016.
No assets or liabilities were transferred between fair value levels in the three months ended March 31, 2016.
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, 2016:
 
Three Months Ended March 31, 2016
In thousands
Balance at the beginning of the period
 
Revaluation
 
Settlements
 
Balance at the
end of the
period
Assets:
 
 
 
 
 
 
 
Equity securities
$
10

 
$
—

 
$
(3
)
 
$
7

Liabilities:
 
 
 
 
 
 
 
Palmarejo royalty obligation embedded derivative
$
4,957

 
$
4,878

 
$
(3,008
)
 
$
6,827

Rochester NSR royalty obligation
$
9,593

 
2,249

 
(965
)
 
$
10,877

The fair value of financial assets and liabilities carried at book value in the financial statements at March 31, 2016 and December 31, 2015 is presented in the following table:
 
March 31, 2016
In thousands
Book Value
 
Fair Value
 
Level 1
 
Level 2
 
Level 3  
Liabilities:
 
 

 
 
 
 
 
 
3.25% Convertible Senior Notes due 2028
$
712

 
$
591

 
$
—

 
$
591

 
$
—

7.875% Senior Notes due 2021(1)
373,695

 
307,732

 
—

 
307,732

 
—

Term Loan due 2020(2)
94,517

 
99,250

 
—

 
99,250

 
—

Palmarejo gold production royalty obligation
9,833

 
10,081

 
—

 
—

 
10,081

(1)
Net of unamortized debt issuance costs and premium received of $5.1 million.
(2)
Net of unamortized debt issuance costs of $4.7 million.
 
December 31, 2015
In thousands
Book Value
 
Fair Value
 
Level 1
 
Level 2
 
Level 3  
Liabilities:
 
 
 
 
 
 
 
 
 
3.25% Convertible Senior Notes due 2028
$
712

 
$
693

 
$
—

 
$
693

 
$
—

7.875% Senior Notes due 2021(1)
373,433

 
227,487

 
—

 
227,487

 
—

Term Loan due 2020(2)
94,489

 
99,500

 
—

 
99,500

 
—

San Bartolomé Lines of Credit
4,571

 
4,571

 
—

 
4,571

 
—

Palmarejo gold production royalty obligation
15,207

 
15,580

 
—

 
—

 
15,580

(1)
Net of unamortized debt issuance costs and premium received of $5.3 million.
(2)
Net of unamortized debt issuance costs of $5.0 million.
The fair values of the Convertible Notes and 7.875% Senior Notes due 2021 (the "Senior Notes") outstanding were estimated using quoted market prices. The fair value of the Term Loan due 2020 (the "Term Loan") approximates book value (excluding unamortized debt issuance costs) as the liability is secured, has a variable interest rate, and lacks significant credit concerns. The fair value of the San Bartolomé line of credit approximates book value due to the short-term nature of the liability and absence of significant interest rate or credit concerns. The fair value of the Palmarejo gold production royalty obligation is estimated based on observable market data including contractual terms, forward silver and gold prices, yield curves, and credit spreads, as well as the Company’s current mine plan which is considered a significant unobservable input.


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

NOTE 11 – DERIVATIVE FINANCIAL INSTRUMENTS
Palmarejo Gold Production Royalty
On January 21, 2009, the Company's subsidiary, Coeur Mexicana S.A. de C.V. ("Coeur Mexicana"), entered into a gold production royalty agreement with a subsidiary of Franco-Nevada Corporation. The royalty covers 50% of the life of mine production from the Palmarejo mine and legacy adjacent properties, excluding production from the recently acquired Paramount Gold and Silver Corp. ("Paramount") properties. The royalty transaction includes a minimum obligation of 4,167 gold ounces per month and terminates when payments on 400,000 gold ounces have been made. At March 31, 2016, a total of 20,994 gold ounces remain outstanding under the obligation.
The price volatility associated with the minimum royalty obligation is considered an embedded derivative. The Company is required to recognize the change in fair value of the remaining minimum obligation due to changing gold prices. Unrealized gains are recognized in periods when the gold price has decreased from the previous period and unrealized losses are recognized in periods when the gold price increases. The fair value of the embedded derivative is reflected net of the Company's current credit adjusted risk free rate, which was 12.4% and 19.9% at March 31, 2016 and December 31, 2015, respectively. The fair value of the embedded derivative at March 31, 2016 and December 31, 2015 was a liability of $6.8 million and $5.0 million, respectively. The mark-to-market adjustments were losses of $4.9 million and $1.5 million for three months ended March 31, 2016 and 2015, respectively.
Payments on the royalty obligation decrease the carrying amount of the minimum obligation and the derivative liability. Each monthly payment is an amount equal to the greater of the minimum of 4,167 ounces of gold or 50% of actual gold production multiplied by the excess of the monthly average market price of gold above $416 per ounce, subject to a 1% annual inflation adjustment. Realized losses on settlement of the liabilities were $3.0 million and $4.2 million for the three months ended March 31, 2016 and 2015, respectively. The mark-to-market adjustments and realized losses are included in Fair value adjustments, net.
Provisional Silver and Gold Sales
The Company enters into sales contracts with third-party smelters and refiners which, in most 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. Changes in silver and gold prices resulted in provisional pricing mark-to-market gains of $0.6 million and $0.9 million in the three months ended March 31, 2016 and 2015, respectively. At March 31, 2016, the Company had outstanding provisionally priced sales of 0.4 million ounces of silver and 38,773 ounces of gold at prices of $15.36 and $1,183, respectively.
Silver and Gold Options
At March 31, 2016, the Company has outstanding put spread contracts on 0.3 million ounces of silver. The weighted average high and low strike prices on the silver put spreads are $15.00 per ounce and $14.00 per ounce, respectively. If the market price of silver were to average less than the high strike price but more than the low strike price during the contract period, the Company would receive the difference between the average market price and the high strike price for the contracted volume over the contract period. If the market price of silver were to average less than the low strike price during the contract period, the Company would receive the difference between the average market price and the high strike price for the contracted volume over the contract period, and the Company would be required to pay the difference between the average market price and the low strike price for the contracted volume over the contract period. The put spread contracts are generally net cash settled and expire during the second quarter of 2016. At March 31, 2016, the fair market value of the put spreads was a net asset of $0.1 million.
During the three months ended March 31, 2016 and 2015, the Company recorded unrealized gains of $2 thousand and unrealized losses of $0.2 million, respectively, related to outstanding options which were included in Fair value adjustments, net. The Company recognized realized losses of $1.6 million and $0.8 million during the three months ended March 31, 2016 and 2015, respectively, from settled contracts.

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

At March 31, 2016, the Company had the following derivative instruments that settle as follows:
In thousands except average prices and notional ounces
2016
 
Thereafter
Palmarejo gold production royalty
$
17,240

 
$
—

Average gold price in excess of minimum contractual deduction
$
821

 
$
—

Notional ounces
20,994

 
—

 
 
 
 
Provisional silver sales
$
6,736

 
$
—

Average silver price
$
15.36

 
$
—

Notional ounces
438,573

 
—

 
 
 
 
Provisional gold sales
$
45,868

 
$
—

Average gold price
$
1,183

 
$
—

Notional ounces
38,773

 
—

 
 
 
 
Silver put options purchased
$
4,500

 
$
—

Average silver strike price
$
15.00

 
$
—

Notional ounces
300,000

 
—

 
 
 
 
Silver put options sold
$
(4,200
)
 
$
—

Average silver strike price
$
14.00

 
$
—

Notional ounces
300,000

 
—


The following summarizes the classification of the fair value of the derivative instruments:
 
March 31, 2016
In thousands
Prepaid expenses and other
 
Accrued liabilities and other
 
Current portion of royalty obligation
 
Non-current portion of royalty obligation
Palmarejo gold production royalty
—

 
—

 
6,827

 
—

Silver and gold options
131

 
36

 
—

 
—

Concentrate sales contracts
85

 
28

 
—

 
—

 
$
216

 
$
64

 
$
6,827

 
$
—

 
December 31, 2015
In thousands
Prepaid expenses and other
 
Accrued liabilities and other
 
Current portion of royalty obligation
 
Non-current portion of royalty obligation
Palmarejo gold production royalty
—

 
—

 
4,957

 
—

Concentrate sales contracts
28

 
536

 
—

 
—

 
$
28

 
$
536

 
$
4,957

 
$
—


15
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, 2016 and 2015 (in thousands):
 
 
 
Three months ended March 31,
Financial statement line
Derivative
 
2016
 
2015
Revenue
Concentrate sales contracts
 
$
566

 
$
914

Fair value adjustments, net
Palmarejo gold royalty
 
(4,878
)
 
(1,545
)
Fair value adjustments, net
Silver and gold options
 
(1,568
)
 
(1,046
)
 
 
 
$
(5,880
)
 
$
(1,677
)
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 financial institutions management deems credit worthy and limits credit exposure to each institution. The Company does not anticipate non-performance by any of its counterparties. In addition, to allow for situations where derivative positions may need to be revised, the Company transacts only in markets that management considers highly liquid.
NOTE 12 – ACQUISITIONS
On February 20, 2015, the Company completed its acquisition of the Wharf gold mine located near Lead, South Dakota, for $99.4 million in cash. The transaction was accounted for as a business combination which requires that assets acquired and liabilities assumed be recognized at their respective fair values at the acquisition date. The Company incurred $2.1 million of acquisition costs, which are included in Pre-development, reclamation, and other on the Condensed Consolidated Statements of Comprehensive Income (Loss).
The following table presents the unaudited pro forma summary of the Company’s Condensed Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2015, as if the acquisition had occurred on January 1, 2015. The following unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations as they would have been had the transaction occurred on the assumed date, nor is it necessarily an indication of trends in future results for a number of reasons, including, but not limited to, differences between the assumptions used to prepare the pro forma information, potential synergies, and cost savings from operating efficiencies.
 
 
Three months ended March 31,
In thousands
 
2016
 
2015 (Pro Forma)
Revenue
 
$
148,387

 
$
170,956

Income (loss) before income and mining taxes
 
(18,290
)
 
(33,271
)
Net income (loss)
 
(20,396
)
 
(33,340
)

NOTE 13 – INVESTMENTS
The Company invests in equity securities of silver and gold exploration and development companies. These investments are classified as available-for-sale and are measured at fair value in the financial statements with unrealized gains and losses recorded in Other comprehensive income (loss).
 
At March 31, 2016
In thousands
Cost
 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Equity securities
3,509

 
(108
)
 
2,129

 
5,530


 
At December 31, 2015
In thousands
Cost
 
Gross
Unrealized
Losses
 
Gross
Unrealized
Gains
 
Estimated
Fair Value
Equity securities
$
3,386

 
$
(1,179
)
 
$
559

 
$
2,766



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

The Company performs a quarterly assessment on each of its equity securities with unrealized losses to determine if the security is other than temporarily impaired. The Company recorded pre-tax other-than-temporary impairment losses of $1.5 million in the three months ended March 31, 2015, in Other, net. The following table summarizes the gross unrealized losses on equity securities for which other-than-temporary impairments have not been recognized and the fair values of those securities, aggregated by the length of time the individual securities have been in a continuous unrealized loss position, at March 31, 2016:
 
Less than twelve months
 
Twelve months or more
 
Total
In thousands
Unrealized Losses
Fair Value
 
Unrealized Losses
Fair Value
 
Unrealized Losses
Fair Value
Equity securities
$
(108
)
$
103

 
$
—

$
—

 
$
(108
)
$
103


NOTE 14 – RECEIVABLES
In thousands
March 31, 2016
 
December 31, 2015
Current receivables:
 
 
 
Trade receivables
$
12,308

 
$
17,878

Income tax receivable
14,203

 
13,678

Value added tax receivable
53,022

 
50,669

Other
3,396

 
3,767

 
$
82,929

 
$
85,992

Non-current receivables:
 
 
 
Value added tax receivable
$
24,114

 
$
24,768

Total receivables
$
107,043

 
$
110,760


NOTE 15 – INVENTORY AND ORE ON LEACH PADS
In thousands
March 31, 2016
 
December 31, 2015
Inventory:
 
 
 
Concentrate
$
17,373

 
$
16,165

Precious metals
19,122

 
21,908

Supplies
42,102

 
43,638

 
$
78,597

 
$
81,711

Ore on leach pads:
 
 
 
Current
$
72,703

 
$
67,329

Non-current
49,294

 
44,582

 
$
121,997

 
$
111,911

Total inventory and ore on leach pads
$
200,594

 
$
193,622


NOTE 16 – PROPERTY, PLANT AND EQUIPMENT
In thousands
March 31, 2016
 
December 31, 2015
Land
$
8,287

 
$
8,287

Facilities and equipment
664,364

 
654,585

Capital leases
62,148

 
30,648

 
734,799

 
693,520

Accumulated amortization
(524,315
)
 
(514,509
)
 
210,484

 
179,011

Construction in progress
10,464

 
16,988

Property, plant and equipment, net
$
220,948

 
$
195,999



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

NOTE 17 – MINING PROPERTIES
Mining properties consist of the following (in thousands):
March 31, 2016
Palmarejo
 
Rochester
 
Kensington
 
Wharf
 
San
Bartolomé
 
La Preciosa
 
Joaquin
 
Coeur Capital
 
Total
Mine development
$
156,257

 
$
150,648

 
$
245,433

 
$
32,509

 
$
39,523

 
$
—

 
$
—

 
$
—

 
$
624,370

Accumulated amortization
(131,770
)
 
(129,100
)
 
(136,757
)
 
(6,836
)
 
(30,788
)
 
—

 
—

 


 
(435,251
)
 
24,487

 
21,548

 
108,676

 
25,673

 
8,735

 
—

 
—

 
—

 
189,119

Mineral interests
629,303

 
—

 
—

 
45,837

 
12,868

 
49,085

 
10,000

 
49,440

 
796,533

Accumulated amortization
(354,554
)
 
—

 
—

 
(12,002
)
 
(11,471
)
 
—

 
—

 
(33,521
)
 
(411,548
)
 
274,749

 
—

 
—

 
33,835

 
1,397

 
49,085

 
10,000

 
15,919

 
384,985

Mining properties, net
$
299,236

 
$
21,548

 
$
108,676

 
$
59,508

 
$
10,132

 
$
49,085

 
$
10,000

 
$
15,919

 
$
574,104

December 31, 2015
Palmarejo
 
Rochester
 
Kensington
 
Wharf
 
San
Bartolomé
 
La Preciosa
 
Joaquin
 
Coeur Capital
 
Total
Mine development
$
151,828

 
$
149,756

 
$
238,786

 
$
32,318

 
$
39,474

 
$
—

 
$
—

 
$
—

 
$
612,162

Accumulated amortization
(131,055
)
 
(126,242
)
 
(131,236
)
 
(5,784
)
 
(30,325
)
 
—

 
—

 
—

 
(424,642
)
 
20,773

 
23,514

 
107,550

 
26,534

 
9,149

 
—

 
—

 
—

 
187,520

Mineral interests
629,303

 
—

 
—

 
45,837

 
12,868

 
49,085

 
10,000

 
59,343

 
806,436

Accumulated amortization
(348,268
)
 
—

 
—

 
(10,551
)
 
(11,400
)
 
—

 
—

 
(34,518
)
 
(404,737
)
 
281,035

 
—

 
—

 
35,286

 
1,468

 
49,085

 
10,000

 
24,825

 
401,699

Mining properties, net
$
301,808

 
$
23,514

 
$
107,550

 
$
61,820

 
$
10,617

 
$
49,085

 
$
10,000

 
$
24,825

 
$
589,219

On March 31, 2016, Coeur sold its 2.0% NSR royalty on the Cerro Bayo mine to the operator, a subsidiary of Mandalay Resources Corporation ("Mandalay"), for total consideration of approximately $5.7 million, consisting of $4.0 million in cash and 2.5 million Mandalay shares. The mineral interest associated with the Cerro Bayo mine was included in the Coeur Capital segment.
The operator of the Endeavor mine in Australia, on which the Company has a 100% silver stream, recently announced a significant curtailment of production due to low lead and zinc prices. As a result, Coeur recorded a $2.5 million write-down of the mineral interest associated with the Endeavor silver stream within the Coeur Capital segment.
On April 19, 2016, Coeur sold its tiered NSR royalty on the El Gallo mine to the operator, a subsidiary of McEwen Mining Inc., for total consideration of approximately $6.3 million, including $1 million in contingent consideration payable in mid-2018. In anticipation of this sale, the Company recorded a $1.9 million