Coeur Mining, Inc.
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Item 1.Business
GENERAL
Coeur Mining, Inc. (“Coeur”, “the Company”, or “we”), founded in 1928, is a precious metals producer with assets located in the United States, Canada, and Mexico. Our common stock is listed on The New York Stock Exchange under the symbol “CDE”.
Coeur’s strategy is to be a well-diversified, growing precious metals producer with a focus on generating sustainable, high-quality cash flow and returns from a balanced, prospective asset base in mining-friendly jurisdictions along with our commitment to exploration and expansions. Our strategy is guided by our purpose statement, We Pursue a Higher Standard, and three key principles: Protect our People, Places and Planet; Develop Quality Resources, Growth and Plans; and Deliver Impactful Results Through Teamwork. We conduct our business with a proactive focus on responsible practices to positively impact the health, safety and socioeconomic status of our people and the communities in which we operate and be good stewards of the environment.
OUR BUSINESS
Operating Segments
We produce and sell precious metals from the following operating segments:
•The Las Chispas underground silver-gold mine, located in the State of Sonora in northern Mexico, which began operations in 2022 and was acquired by Coeur in early 2025.
•The Palmarejo silver-gold complex, located in the State of Chihuahua in northern Mexico, which has been in operation since 2009.
•The Rochester open pit heap leach silver-gold mine, located in northwestern Nevada, which has been in operation since 1986 and completed a significant expansion in 2024.
•The Kensington underground gold mine, located north of Juneau, Alaska, which began operations in 2010.
•The Wharf open pit heap leach gold mine, located near Lead, South Dakota, which began operations in 1982.
In addition, the Company operates the Silvertip underground silver-zinc-lead exploration project, located in northern British Columbia, Canada, which was acquired by Coeur in 2017.
On November 2, 2025, the Company entered into a definitive agreement (the “Arrangement Agreement”) whereby, a wholly-owned subsidiary of Coeur (“Canadian Sub”) would acquire all of the issued and outstanding shares of New Gold Inc. (“New Gold”) pursuant to a court-approved plan of arrangement (the “New Gold Transaction”). Under the terms of the Arrangement Agreement, New Gold shareholders were to receive 0.4959 Coeur common shares for each New Gold common share (the “Exchange Ratio”). The New Gold Transaction is anticipated to close in the first half of 2026, subject to relevant regulatory approvals and routine closing conditions. Coeur’s presence in Canada is expected to grow with the addition of two Canadian operations, the New Afton gold-copper mine and the Rainy River gold-silver mine, as a result of the acquisition.
Metals Prices and Hedging Activities
The financial results of the Company and its operating segments are substantially dependent upon the market prices of gold and silver, which fluctuate widely. The Company has in the past, and may in the future, enter into derivative contracts to protect the selling price for certain anticipated gold and silver production and to manage risks associated with foreign currencies. For additional information, see “Item 1A – Risk Factors”, “Item 7A – Quantitative and Qualitative Disclosures About Market Risk” and “Note 14 – Derivative Financial Instruments in the notes to the Consolidated Financial Statements”.
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Metal Processing, Marketing and Sales
We produce gold and silver doré, as well as gold concentrate. The doré produced at the Las Chispas mine, Palmarejo complex, and Rochester mine, as well as the electrolytic cathodic sludge produced by the Wharf mine, is refined by a geographically diverse group of third-party refiners into gold and silver bullion according to benchmark standards set by the London Bullion Market Association, which regulates the acceptable requirements for bullion traded in the London precious metals markets. We then sell gold and silver bullion to multi-national banks, bullion trading houses, and refiners across the globe. Our gold concentrate product from the Kensington mine is sold under a long-term offtake agreement and is shipped to geographically diverse third-party smelters.
We believe that the loss of any one smelter, refiner, trader or third-party customer would not materially adversely affect us due to the liquidity of the markets and current availability of alternative trading counterparties.
Commodities
We purchase materials and supplies from third parties to conduct our business, including electricity, fuel, chemical reagents, explosives, steel and concrete. Prices for these commodities are volatile and can fluctuate due to conditions that are difficult to predict, including inflation, currency fluctuations, global competition for resources, consumer or industrial demand and other factors. For most of these commodities, we have existing alternate sources of supply, or alternate sources of supply are readily available. We continuously monitor supply and cost trends for these items.
GOVERNMENT REGULATION
General
Our business is subject to extensive federal, state, local and foreign laws governing the protection of the environment, prospecting, development, production, mine closure, taxes, labor standards, occupational health, mine safety, toxic substances, protection of endangered, protected or other specified species and other matters. The costs to comply with these regulatory requirements are substantial and possible future legislation and regulations could cause additional expense, capital expenditures, restrictions and delays in the development and continued operation of our properties, the extent of which cannot be predicted. Expenditures for environmental compliance in 2026 are expected to range from $18.1 million to $28.1 million, which includes New Gold assets. We have reviewed and considered current federal legislation relating to climate change and do not believe the legislation to have a material effect on our operations. Future changes in U.S., Mexican or Canadian federal, state or provincial laws or regulations could have a material adverse effect upon us and our results of operations. For additional information regarding key regulatory risks, please see “Item 1A – Risk Factors”.
Permitting
The Rochester, Kensington and Wharf mines are subject to extensive U.S. federal and state permitting laws and regulations. Mexico, where the Palmarejo complex and Las Chispas mine are located, and Canada, where the Silvertip exploration property is located, have both adopted laws and guidelines for environmental permitting that are similar to those in effect in the United States. The permitting process in each jurisdiction requires, among other things, a thorough study to determine the baseline condition of the mining site and surrounding area, an environmental impact analysis, and proposed mitigation measures to minimize and offset the environmental impact of mining operations, in addition to consultation requirements with local indigenous groups, in certain instances. We have received all permits required to operate and carry out the current scope of activities at the Palmarejo complex, Las Chispas, Rochester, Kensington and Wharf mines, and the Silvertip exploration property. However, we are in the process of amending an operating permit at Las Chispas that is set to expire in November 2026, which is expected to support future planned activities. If we pursue an expansion at Silvertip, it will require new or amended permits.
Maintenance of Mining Claims
All of the jurisdictions where we operate impose federal, state and/or provincial requirements for maintaining mining claims (United States), mining concessions (Mexico) and mineral claims and mining leases (British Columbia), including fees, reporting, and/or evidence of work, among other requirements. Our failure to comply with any of these requirements could result in the loss of our ability to conduct mining activities in a particular location, which could have a material adverse impact on our business.
HUMAN CAPITAL MANAGEMENT
Effective human capital management at Coeur is critical to achieving our strategic goals. We aim to be an employer of choice by promoting safety first and proactively developing our people, while fostering a healthy and inclusive culture. At December 31, 2025, we had approximately 2,620 employees (1,289 in the U.S., 1,235 in Mexico and 96 in Canada) and over
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2,093 (1,602 in Mexico, 433 in the U.S. and 58 in Canada) people were working as contractors in support of Coeur’s operations.
Culture Assessment
We are focused on regular evaluation of our culture. In 2025, we invited all employees to participate in our third culture assessment by completing an anonymous survey. Employee participation in 2025 was 92%, which exceeded industry benchmarks. Feedback was reviewed by the management team and our Board of Directors (our “Board”). The management team also reviewed the results with employees at each of our operations through facilitated discussions to gain additional insight into the feedback. We developed site-specific action plans to address feedback and monitor progress in the future. The results of the assessment confirmed our belief that we have an ethical, safe, engaged, and proud workforce and also highlighted areas for improvement that are now being addressed.
Recruitment
We seek to recruit and retain employees at all levels who embody our purpose statement, We Pursue a Higher Standard, through safe and ethical conduct. Our strong culture of teamwork and our reputation as a responsible company and an engaged community member motivate new employee referrals. We have also created a series of partnership programs in local communities to provide internships, scholarships, and apprenticeships to build a pipeline of potential employees in the next generation.
Inclusion
Coeur’s continuing commitment to fostering an inclusive workforce is evidenced by programs such as Coeur Heroes, which provided over 110 career opportunities to current and former U.S. military personnel last year. We partner with a variety of industry groups to reinforce pipeline development and recruiting efforts at key universities. In order to emphasize the importance of inclusion in the workplace, we provided our hourly workforce at every operation with training on topics such as bullying and bystander intervention, as well as education on overall mental wellness to support each employee feeling respected and included at work.
Employee Development
We periodically solicit feedback on each member of our executive team through 360 assessments. We believe this feedback is important to maintaining a strong culture by effectively assessing leadership performance and development, increasing accountability, facilitating succession planning and identifying areas for improvement and change. We provide opportunities for employees to participate in IMPACT training, an intensive 18-month training program we created for front-line supervisors throughout our organization to focus on leadership development and mining as a business. Through IMPACT training, we have invested over 26,250 cumulative hours of leadership training and personal development in almost 270 employees. In 2022, after many employees had graduated from IMPACT training over the last four years, we introduced our first Advanced IMPACT training for employees at manager and director levels in the organization.
Succession Planning
We conduct robust succession planning throughout the organization annually, by employing specific talent diagnostics and skills development. High potential talent within the organization is identified, and development plans are created starting from our front-line supervisors and up to our Chief Executive Officer.
Our Board oversees the recruitment, development, and retention of our senior executives. Significant focus is placed on succession planning both for key executive roles and also deeper into the organization. In-depth discussions occur multiple times per year in meetings of the Board, Compensation and Leadership Development Committee and Nominating and Corporate Governance Committee, including in executive sessions to foster candid conversations. Directors have regular and direct exposure to senior leadership and high-potential employees during Board and committee meetings and through other informal meetings and events held during the year.
Local Hire
Investing in local communities extends beyond financial support. Since 2018, we have hired an average of 60% of our new hires from local communities. During 2025, we provided over 40 apprenticeships and internships and worked with organizations such as By the Hand Club in Chicago to educate youth in our communities about career opportunities in mining. Providing career opportunities to local community members and participating in community initiatives help create a closer connection between our operations and local stakeholders and communities.
Rewards & Wellness
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As part of our fundamental need to attract and retain talent, we regularly evaluate our compensation, benefits, and employee wellness offerings. We have determined that our average employee earns over 40% more than the average employee in their local markets according to industry benchmarking. Over 93% of U.S. employees are enrolled in our medical benefit plan, and over 90% of U.S. employees contribute to our 401(k) plan. Supplemental healthcare is provided above government requirements in both Canada and Mexico. We were a leader in the mining industry by providing domestic partner benefits in 2017 and participation has increased 250% since introduction. In 2022, we expanded paid parental and primary caregiver leave for U.S. employees.
In addition, we have engaged a third-party mental health care provider for innovative care and counseling resources. This resource leverages technology and clinical best practices to assist our employees and their families gain fast access to highly effective quality care when needed most. We also implemented a Total Worker Health program in 2023, which integrates protection from work-related safety and health hazards with promotion of injury and illness-prevention efforts to advance worker well-being both physically and mentally. In 2025, our Rochester mine opened our first medical clinic in nearby Lovelock, Nevada, which will offer healthcare services to all Coeur Rochester employees and dependents. This investment in our employees and their families underscores Coeur’s commitment to leaving a positive legacy in the communities we serve and prioritizing the health and wellbeing of our employees and their families.
RESPONSIBILITY
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
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 of Coeur 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”) allocation, referred to as the co-product method, based on revenue contribution for Palmarejo and Rochester 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 operating assets located in the United States and Mexico and an exploration project in Canada.
2025 Highlights
For the full year 2025, Coeur reported revenue of $2,070.1 million and cash provided by operating activities of $886.9 million. We reported GAAP net income of $585.9 million, or $0.95 per diluted share. On a non-GAAP adjusted basis, the Company reported EBITDA of $1,025.8 million and net income of $493.4 million or $0.80 per diluted share.
•Record full-year gold and silver production – Balanced contributions across Coeur’s portfolio led to 2025 full-year production of 419,046 ounces of gold and 17.9 million ounces of silver, representing year-over-year increases of 23% and 57%, respectively, within the Company’s 2025 consolidated guidance ranges
•Record financial results – Fourth quarter free cash flow increased 66% versus the prior quarter to a record $313.2 million, bringing the full-year total to $666 million. Adjusted EBITDA increased 60% versus the prior quarter to a record $425 million, driving the last twelve-month total to over $1.0 billion. Average realized prices for gold and silver increased 21% and 39%, respectively, compared to the third quarter
•Long-term objective of net cash achieved – Cash and equivalents more than doubled compared to the prior quarter-end and increased tenfold compared to the prior year-end to $554 million; total debt decreased 42% to $341 million at December 31, 2025 compared to year-end 2024
•Strong quarter at Rochester – Silver and gold production at Rochester increased 6% and 20% quarter-over-quarter, respectively, and 40% and 54% year-over-year, respectively. During the fourth quarter, both tonnes2 crushed and tonnes placed reached record levels, with tonnes crushed increasing 12% to 6.4 million tonnes (7.0 million imperial tons) and tonnes placed increasing 23% to 9.3 million tonnes (10.2 million imperial tons). Fourth quarter free cash flow increased to $78 million compared to $30 million in the third quarter and $12 million in the fourth quarter for the prior year
•New Gold transaction approved by stockholders – On January 27, 2026, stockholders of both Coeur and New Gold voted overwhelmingly in favor of Coeur’s proposed acquisition of New Gold Inc. (“New Gold”). The transaction, which remains on track to close in the first half of 2026, is expected to create a new, sector-leading, all-North American senior precious metals mining company
•2026 guidance highlights portfolio strength – The Company expects 2026 gold and silver production from Coeur’s current portfolio of assets of 390,000 - 460,000 ounces and 18.2 - 21.3 million ounces, respectively, driven by strong contributions across the portfolio, including expected continued growth at Rochester and a full year of production at Las Chispas. The Company plans to issue guidance including New Gold’s two assets, the New Afton and Rainy River mines, upon closing of the transaction
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Selected Financial and Operating Results
| Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| Financial Results: (in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||
| Gold sales | $ | 1,343,729 | $ | 734,861 | $ | 575,677 | ||||||||||||||||||||||||||||||||
| Silver sales | $ | 726,397 | $ | 319,145 | $ | 245,529 | ||||||||||||||||||||||||||||||||
| Consolidated revenue | $ | 2,070,126 | $ | 1,054,006 | $ | 821,206 | ||||||||||||||||||||||||||||||||
| Net income | $ | 585,872 | $ | 58,900 | $ | (103,612) | ||||||||||||||||||||||||||||||||
| Net income per share, diluted | $ | 0.95 | $ | 0.15 | $ | (0.30) | ||||||||||||||||||||||||||||||||
Adjusted net income (loss)(1) | $ | 493,361 | $ | 70,117 | $ | (78,048) | ||||||||||||||||||||||||||||||||
Adjusted net income (loss) per share, diluted(1) | $ | 0.80 | $ | 0.18 | $ | (0.23) | ||||||||||||||||||||||||||||||||
EBITDA(1) | $ | 964,579 | $ | 302,600 | $ | 60,465 | ||||||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 1,025,772 | $ | 339,152 | $ | 142,302 | ||||||||||||||||||||||||||||||||
Total debt(2) | $ | 340,533 | $ | 590,058 | $ | 545,310 | ||||||||||||||||||||||||||||||||
| Operating Results: | ||||||||||||||||||||||||||||||||||||||
| Gold ounces produced | 419,046 | 341,582 | 317,671 | |||||||||||||||||||||||||||||||||||
| Silver ounces produced | 17,914,682 | 11,389,519 | 10,250,906 | |||||||||||||||||||||||||||||||||||
| Gold ounces sold | 422,032 | 340,816 | 315,511 | |||||||||||||||||||||||||||||||||||
| Silver ounces sold | 18,155,235 | 11,418,821 | 10,140,405 | |||||||||||||||||||||||||||||||||||
| Average realized price per gold ounce | $ | 3,184 | $ | 2,156 | $ | 1,825 | ||||||||||||||||||||||||||||||||
| Average realized price per silver ounce | $ | 40.01 | $ | 27.95 | $ | 24.21 | ||||||||||||||||||||||||||||||||
(1)See “Non-GAAP Financial Performance Measures”. Includes costs of $93.5 million related to the purchase price allocation (“PPA”) ascribed to Inventory at Las Chispas.
(2)Includes finance leases. Net of debt issuance costs and premium received.
Consolidated Financial Results
Year Ended December 31, 2025 compared to Year Ended December 31, 2024
Revenue
We sold 422,032 gold ounces and 18.2 million silver ounces, compared to 340,816 gold ounces and 11.4 million silver ounces. Revenue increased by $1,016.1 million, or 96%, as a result of a 24% and 59% increase in gold and silver ounces sold (includes $421.4 million of post-acquisition sales at Las Chispas), and a 45% and 43% increase in average realized gold and silver prices, respectively. The increase in gold ounces sold was the result of post-acquisition sales at Las Chispas, higher placement rates and grades at Rochester, and higher mill throughput at Kensington, partially offset by lower grades at Palmarejo. The increase in silver ounces sold was the result of post-acquisition sales at Las Chispas, and higher silver ounces recovered at Rochester as a result of higher placement rates, partially offset by lower silver grades at Palmarejo. Gold and silver represented 65% and 35% of 2025 sales revenue, respectively, compared to 70% and 30% of 2024 sales revenue, respectively.
The following table summarizes consolidated metal sales:
| Year Ended December 31, | Increase (Decrease) | Percentage Change | |||||||||||||||||||||||||||||||||||||||||
| In thousands | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||||
| Gold sales | $ | 1,343,729 | $ | 734,861 | $ | 608,868 | 83 | % | |||||||||||||||||||||||||||||||||||
| Silver sales | 726,397 | 319,145 | 407,252 | 128 | % | ||||||||||||||||||||||||||||||||||||||
| Metal sales | $ | 2,070,126 | $ | 1,054,006 | $ | 1,016,120 | 96 | % | |||||||||||||||||||||||||||||||||||
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Costs Applicable to Sales
Costs applicable to sales increased $292.2 million, or 48%, primarily driven by post-acquisition gold and silver ounces sold at Las Chispas that includes the impact of the PPA ascribed to Inventory of $93.5 million, higher gold and silver ounces sold at Rochester, higher gold ounces sold at Kensington, and operating costs (royalties) at Rochester, Kensington, and Wharf, partially offset by lower gold and silver ounces sold at Palmarejo. For a complete discussion of costs applicable to sales, see Results of Operations below.
Amortization
Amortization increased $126.1 million, or 101%, as a result of post-acquisition gold and silver ounces sold at Las Chispas, increased production at Rochester and Kensington, and the full-year impact of the commissioning of the newly expanded crushing circuit at Rochester in March 2024, partially offset by lower gold and silver ounces sold at Palmarejo and Wharf.
Expenses
General and administrative expenses increased $9.5 million, or 20%, primarily due to higher stock-based compensation and annual incentive costs, partially offset by lower outside service and legal costs.
Exploration expense increased $26.9 million, or 45%, driven by planned higher resource expansion drilling activity at all locations, including the addition of exploration expense at Las Chispas post-acquisition.
Pre-development, reclamation, and other expenses increased $18.5 million, or 36%, as a result of higher transaction costs, the Wage and Hour Litigation settlement, and higher asset retirement accretion following the 2024 year-end changes to estimates, partially offset by lower loss on the sale of assets.
The following table summarizes pre-development, reclamation, and other expenses:
| Year Ended December 31, | Increase (Decrease) | Percentage Change | |||||||||||||||||||||||||||||||||||||||
| In thousands | 2025 | 2024 | |||||||||||||||||||||||||||||||||||||||
| Silvertip ongoing carrying costs | 10,440 | 8,513 | 1,927 | 23 | % | ||||||||||||||||||||||||||||||||||||
| Loss (gain) on sale of assets | 698 | 4,250 | (3,552) | (84) | % | ||||||||||||||||||||||||||||||||||||
| Asset retirement accretion | 19,697 | 16,778 | 2,919 | 17 | % | ||||||||||||||||||||||||||||||||||||
| Kensington royalty litigation settlement | (95) | 7,156 | (7,251) | 100 | % | ||||||||||||||||||||||||||||||||||||
| Transaction costs | 26,409 | 8,517 | 17,892 | 210 | % | ||||||||||||||||||||||||||||||||||||
| Wage and Hour Litigation settlement | 7,059 | — | 7,059 | 100 | % | ||||||||||||||||||||||||||||||||||||
| Other | 5,580 | 6,059 | (479) | (8) | % | ||||||||||||||||||||||||||||||||||||
| Pre-development, reclamation and other expense | $ | 69,788 | $ | 51,273 | $ | 18,515 | 36 | % | |||||||||||||||||||||||||||||||||
Other Income and Expenses
Interest expense (net of capitalized interest of $1.1 million) decreased to $30.9 million from $51.3 million due to lower interest paid under the RCF attributable to lower average debt levels and interest rate, partially offset by higher interest paid under finance lease obligations. The RCF had no outstanding amount drawn as of December 31, 2025.
Other, net decreased to a gain of $6.9 million compared to $13.0 million as a result of the recognition of gains in 2024
related to premiums received from the private placement flow-through share offering (“Private Placement Offering”), and lower gains on foreign exchange rates.
Income and Mining Taxes
The Company’s Income and mining tax (expense) benefit consisted of:
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| Year Ended December 31, | |||||||||||||||||
| In thousands | 2025 | % | 2024 | % | |||||||||||||
| U.S. federal statutory tax rate | $ | (143,428) | 21.0 | % | $ | (26,534) | 21.0 | % | |||||||||
State income and mining taxes, net of federal benefit(1) | (37,331) | 5.5 | (11,313) | 9.0 | |||||||||||||
| Foreign tax effects | |||||||||||||||||
| Mexico | |||||||||||||||||
| Foreign tax rate differences | (30,341) | 4.4 | (11,253) | 8.9 | |||||||||||||
| Foreign permanent differences | 1,893 | (0.3) | (1,384) | 1.1 | |||||||||||||
| Mining taxes, net of income tax benefit | (27,276) | 4.0 | (8,865) | 7.0 | |||||||||||||
| Change in valuation allowance | 4,520 | (0.7) | — | — | |||||||||||||
| Foreign withholding taxes | (10,821) | 1.6 | (6,900) | 5.5 | |||||||||||||
| Foreign exchange rates | (38,893) | 5.7 | 1,434 | (1.1) | |||||||||||||
| Foreign inflation and indexing | 5,724 | (0.8) | 2,230 | (1.8) | |||||||||||||
| Uncertain tax positions | (28,820) | 4.2 | — | — | |||||||||||||
| Enactment of 1% increase in Mexico special mining duty tax | — | — | (1,696) | 1.3 | |||||||||||||
| Other, net | 2,967 | (0.4) | (175) | 0.1 | |||||||||||||
| Canada | |||||||||||||||||
| Foreign tax rate difference | (2,954) | 0.4 | (2,434) | 1.9 | |||||||||||||
| Provincial tax | 5,907 | (0.9) | 4,868 | (3.9) | |||||||||||||
| Canadian flow through shares permanent | (3,802) | 0.6 | (7,246) | 5.7 | |||||||||||||
| Change in valuation allowance | (9,481) | 1.4 | (3,746) | 3.0 | |||||||||||||
| Foreign withholding taxes | (3,460) | 0.5 | (1,523) | 1.2 | |||||||||||||
| Other | (3,427) | 0.5 | 40 | — | |||||||||||||
| Other foreign jurisdictions | |||||||||||||||||
| Other | (420) | 0.1 | (456) | 0.4 | |||||||||||||
| Effect of cross border tax laws | |||||||||||||||||
| Subpart F income | (32) | — | (1,345) | 1.1 | |||||||||||||
| Change in valuation allowance | 208,938 | (30.6) | 4,011 | (3.2) | |||||||||||||
| Nondeductible items | |||||||||||||||||
| Percentage depletion | 21,092 | (3.1) | 6,974 | (5.5) | |||||||||||||
| Equity compensation | 1,321 | (0.2) | (1,205) | 1.0 | |||||||||||||
| Other nondeductible items | (2,185) | 0.3 | (769) | 0.6 | |||||||||||||
| Other adjustments | |||||||||||||||||
| Other | (6,357) | 1.0 | (163) | 0.1 | |||||||||||||
| Income and mining tax (expense) benefit | $ | (96,666) | 14.2 | % | $ | (67,450) | 53.4 | % | |||||||||
(1)State mining taxes in South Dakota, Nevada, and Alaska made up the majority (greater than 50 percent) of the state tax effect.
Income and mining tax expense of approximately $96.7 million resulted in an effective tax rate of 14.2% for 2025. This compares to income tax expense of $67.5 million for an effective tax rate of 53.4% for 2024. 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) U.S. valuation allowance release; (ii) variations in our income before income taxes; (iii) geographic distribution of that income; (iv) foreign exchange rates; (v) mining taxes; (vi) the impact of uncertain tax positions; (vii) percentage depletion; and (viii) 2024 enactment of a 1% increase in Mexico’s special mining duty tax. Fluctuations in foreign exchange rates on deferred tax balances increased income and mining tax expense by $43.5 million and decreased by $0.3 million for the years ended 2025 and 2024, respectively. The impact of foreign exchange rates on deferred tax balances is predominantly due to the Mexican Peso and deferred taxes resulting from Las Chispas PPA. Therefore, the effective tax rate will fluctuate, sometimes significantly, period to period.
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The following table summarizes the components of the Company’s income (loss) before tax and income and mining tax (expense) benefit:
| Year ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| In thousands | Income (loss) before tax | Tax (expense) benefit | Income (loss) before tax | Tax (expense) benefit | |||||||||||||||||||||||||||||||
| United States | $ | 403,735 | $ | 102,058 | $ | 50,194 | $ | (13,063) | |||||||||||||||||||||||||||
| Canada | (56,323) | (6,879) | (46,702) | (1,523) | |||||||||||||||||||||||||||||||
| Mexico | 337,125 | (191,845) | 125,027 | (52,864) | |||||||||||||||||||||||||||||||
| Other jurisdictions | (1,999) | — | (2,169) | — | |||||||||||||||||||||||||||||||
| $ | 682,538 | $ | (96,666) | $ | 126,350 | $ | (67,450) | ||||||||||||||||||||||||||||
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 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 factors that impact the Company’s ability to realize its deferred tax assets. For additional information, please see “Item 1A - Risk Factors”.
The Company has historically provided a valuation allowance against its U.S. net deferred tax assets. In 2025, the Company released $209.8 million of valuation allowance against its U.S. net deferred tax assets, resulting in a non-cash deferred tax benefit. The $209.8 million valuation allowance release is composed of $73.3 million related to current year income and $136.5 million related to forecasted future year income. The timing of this valuation allowance release was primarily due to the cumulative income position for the most recent three-year period and projected future earnings.
The Company continues to maintain a valuation allowance against approximately $52.4 million of U.S. federal and state deferred tax assets as of December 31, 2025, because the Company has concluded that it is not more likely than not to be realized.
The exact timing and amount of any valuation allowance release are subject to change, depending upon the level of profitability that the Company is able to achieve and the net deferred tax assets available.
Net Income
Net income was $585.9 million, or $0.95 per diluted share, compared to $58.9 million, or $0.15 per diluted share. The increase in net income was driven by a 24% and 59% increase in gold and silver ounces sold (includes $421.4 million of post-acquisition sales at Las Chispas), a 45% and 43% increase in average realized gold and silver prices, respectively, lower interest expense, and a tax benefit of $160.0 million related to the expectation that our U.S. deferred tax assets are now expected to be used before expiration. This was partially offset by higher exploration, general and administrative, and transaction costs, and the Wage and Hour Litigation settlement of $6.1 million, plus the employer’s share of relevant taxes. Adjusted net income was $493.4 million, or $0.80 per diluted share, compared to $70.1 million, or $0.18 per diluted share (see “Non-GAAP Financial Performance Measures”).
Year Ended December 31, 2024 compared to Year Ended December 31, 2023
Revenue
We sold 340,816 gold ounces and 11.4 million silver ounces, compared to 315,511 gold ounces and 10.1 million silver ounces. Revenue increased by $232.8 million, or 28%, as a result of an 18% and 15% increase in average realized gold and silver prices, respectively, and an 8% and 13% increase in gold and silver ounces sold, respectively. The increase in gold ounces sold was due to higher gold production at all sites, specifically higher grade and recovery rates at Palmarejo, the successful completion of the Rochester expansion, higher mill throughput and grade at Kensington, and higher tonnes and grade at Wharf. The increase in silver ounces sold was the result of higher grade and recovery rates at Palmarejo, and the successful completion of the Rochester expansion. Gold and silver represented 70% and 30%, respectively, of both 2024 and 2023 sales revenue.
47
The following table summarizes consolidated metal sales:
| Year Ended December 31, | Increase (Decrease) | Percentage Change | |||||||||||||||||||||||||||||||||||||||
| In thousands | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||
| Gold sales | $ | 734,861 | $ | 575,677 | $ | 159,184 | 28 | % | |||||||||||||||||||||||||||||||||
| Silver sales | 319,145 | 245,529 | 73,616 | 30 | % | ||||||||||||||||||||||||||||||||||||
| Metal sales | $ | 1,054,006 | $ | 821,206 | $ | 232,800 | 28 | % | |||||||||||||||||||||||||||||||||
Costs Applicable to Sales
Costs applicable to sales decreased $26.7 million, or 4%, primarily due to higher recoverable ounces placed on the leach pad at Wharf, an increase in estimated recoverable ounces on the legacy leach pad in the first quarter of 2024 at Rochester, lower net realizable value (“LCM”) adjustments at Rochester, and the favorable impact of exchange rates at Palmarejo, partially offset by higher gold and silver ounces sold at all sites. For a complete discussion of costs applicable to sales, see Results of Operations below.
Amortization
Amortization increased $25.2 million, or 25%, and resulted primarily from higher gold and silver ounces sold at all sites and, at Rochester, the commencement of production of the new leach pad in mid-September 2023, and the three-stage crushing circuit in March 2024, partially offset by lower LCM adjustments.
Expenses
General and administrative expenses increased $6.1 million, or 15%, primarily due to higher employee compensation, outside service and legal costs.
Exploration expense increased $28.7 million, or 93%, driven by the sustained increased drilling at Palmarejo, Rochester, Wharf and Silvertip in 2024, and the Canadian mining exploration tax credits associated with expenditures at the Silvertip exploration project recognized in 2023.
Pre-development, reclamation, and other expenses decreased $3.4 million, or 6%, stemming from lower losses on the sale of assets and lower ongoing carrying costs at Silvertip, partially offset by the Kensington royalty litigation settlement of $7.2 million and transaction costs of $8.5 million related to the acquisition of SilverCrest.
The following table summarizes pre-development, reclamation, and other expenses:
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-01 | Watkinson Kenneth J | VP, Corporate Controller & CAO | Sell | -39,000 | $18.60 | -$725,400 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-08-05 10-Q expected by 2026-08-08 (in 51 days)
- ~2026-10-28 10-Q expected by 2026-10-31 (in 135 days)
- ~2027-02-17 10-K expected by 2027-02-28 (in 247 days)
- ~2027-05-05 10-Q expected by 2027-05-08 (in 324 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-18 8-K Other Events; Financial Statements and Exhibits
- 2026-05-13 8-K Officer/Director Change; Bylaws/Articles Amended; Shareholder Vote Results; Other Events; Financial Statements and Exhibits
- 2026-05-06 8-K/A Completion of Acquisition/Disposition; Financial Statements and Exhibits
- 2026-05-06 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-06 10-Q Quarterly Report
- 2026-04-23 8-K Material Agreement Entered; Material Financial Obligation; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-03-23 8-K Material Agreement Entered; Completion of Acquisition/Disposition; Unregistered Equity Sale; Material Modification to Rights; Officer/Director Change; Bylaws/Articles Amended; Regulation FD Disclosure; Other Events; Financial Statements and Exhibits
- 2026-02-20 8-K/A Earnings Release; Financial Statements and Exhibits
- 2026-02-18 10-K Annual Report
- 2026-02-18 8-K Earnings Release; Officer/Director Change; Other Events; Financial Statements and Exhibits
- 2026-01-16 8-K Other Events
- 2025-11-03 8-K Material Agreement Entered; Unregistered Equity Sale; Other Events; Financial Statements and Exhibits
- 2025-10-29 10-Q Quarterly Report
- 2025-10-29 8-K Earnings Release; Financial Statements and Exhibits
- 2025-08-06 10-Q Quarterly Report