Coeur Reports Second Quarter 2013 Results

Coeur Mining, Inc. (the “Company” or “Coeur”) (NYSE: CDE) (TSX: CDM) reported metal sales of $204.5 million, cash flow from operating activities of $63.3 million, or $0.63 per share, and capital expenditures of $27.2 million during the second quarter 2013.

The Company produced 4.6 million ounces of silver and 60,757 ounces of gold during the second quarter 2013, representing increases of 21% and 7%, respectively, over the first quarter 2013. Silver and gold production at the Palmarejo mine in Mexico increased 24% and 23%, respectively, compared to the first quarter. Companywide cash operating costs were $8.86 per silver ounce(1) and were $1,115 per gold ounce(1) at the Company’s Kensington gold mine during the second quarter.

The Company reaffirmed its 2013 full-year production guidance of 18.0-19.5 million ounces of silver and 250,000-265,000 ounces of gold. Despite lower gold prices used to calculate by-product credits, Coeur is maintaining its full-year cash operating cost(1) guidance of $9.50 – $10.50 per silver ounce, which reflects the effects of the Company’s ongoing cost reduction efforts. Although the Company anticipates Kensington’s second half cash operating costs per gold ounce(1) to be approximately 20% lower than the first half of the year, full-year 2013 cost guidance for Kensington is being revised upward slightly to $950 – $1,000 (compared to prior guidance of $900 – $950). Coeur will provide a three-year production outlook for each of its operations during the second half of 2013.

Second Quarter 2013 Highlights

— Metal production increased to 4.6 million silver ounces and 60,757 gold
ounces, an increase of 21% and 7%, respectively, from the first quarter
2013.

— Metal sold increased to 5.2 million silver ounces and 63,389 gold ounces
from 3.1 million silver ounces and 51,926 gold ounces in the first
quarter 2013.

— Net metal sales were $204.5 million, up 19% compared to the first quarter
2013 despite average realized prices of $22.86 per silver ounce and
$1,416 per gold ounce, which were 25% and 13% lower, respectively, than
the first quarter 2013.

— Cash flow from operating activities was $63.3 million, or $0.63 per share,
in the second quarter compared to $12.9 million, or $0.14 per share,
during the first quarter 2013. Net loss for the second quarter 2013 was
$35.0 million, or $0.35 per share, compared with net income of $12.3
million, or $0.14 per share, in the first quarter 2013. Adjusted
earnings1 were $(34.6) million, or $(0.35) per share, compared with $6.8
million, or $0.08 per share, in the first quarter 2013.

— Cash, cash equivalents, and short-term investments were $249.5 million at
June 30, 2013, compared with $332.8 million at March 31, 2013. On April
16, 2013, $99.1 million was used as part of the consideration to acquire
Orko Silver Corporation. The Company’s $100 million revolving credit
facility remains undrawn.

— Effective June 27, 2013, Coeur settled the outstanding claims dispute at
Rochester.

(1.) (Adjusted earnings and cash operating costs are non-GAAP measures.
Please see tables in the Appendix for the reconciliation to U.S. GAAP.
Total debt includes short and long-term indebtedness and excludes
capital leases and royalty obligations.)

Mitchell J. Krebs, Coeur’s President and Chief Executive Officer, said, “Our second quarter operating performance improved significantly compared to this year’s first quarter and last year’s fourth quarter. Palmarejo is now performing quite consistently from month-to-month. Our operations and technical teams deserve tremendous credit for the improvements at Palmarejo since late last year. Continued robust silver production from San Bartolomé and higher than planned gold production from Palmarejo are expected to offset lower than expected production levels at Rochester, which encountered poor crusher performance in the first half of the year. We remain enthusiastic about the expansion initiatives underway at Rochester, which we believe can make this long-running operation our largest cash flow generator in the next five years. The Kensington gold mine in Alaska is now demonstrating its ability to operate more consistently as planned. We expect production from Kensington to increase and unit costs to decrease significantly during the second half of the year due to higher grades. Finally, we are beginning a feasibility study on the La Preciosa project in Mexico, which is expected to be completed in mid-2014, and we will be focusing our efforts on optimizing the results of the PEA to improve the project’s economics,” Mr. Krebs added.

“Since late last year, Coeur has been actively pursuing a four-pronged strategy designed to maximize the Company’s net cash flow: (1) identifying and implementing revenue enhancement opportunities at existing operations; (2) reducing operating and non-operating costs; (3) reducing capital spending, completing expansion projects at two of our mines, and targeting significantly lower capital expenditures in 2014; and (4) effectively managing working capital. I am pleased with the results of these initiatives and the targets we have established, which are summarized below and support our expectation to remain net cash flow positive at current price levels:

Revenue Enhancements:

— Process recovery enhancements at Palmarejo expected to boost silver and
gold recovery rates by 5%-10% by year-end, which are expected to result
in approximately $30 million of incremental annual metal sales (assuming
$20 per ounce silver and $1,300 per ounce gold prices).

— Re-sequencing of higher-grade stopes at Kensington containing expected
10% higher grade during the second half of 2013, which is anticipated to
increase production by approximately 25% and decrease unit operating
costs by 20% compared to the first half of 2013.

— Completion of the $15.1 million process plant expansion project at San
Bartolomé by the end of the year, which is expected to increase
silver production by 10%-15%, resulting in $11-$17 million of incremental
annual metal sales (assuming a $20 per ounce silver price).

Cost Reductions:

— $19 million of cash operating cost savings versus plan realized during
the first half of 2013.

— $8-$9 million of further cash operating cost reductions targeted during
the remainder of the year. The projected cost savings are lower than in
the first half due to higher than planned production levels in the second
half of 2013.

— Reducing exploration expense by 17%, or approximately $3 million during
the remainder of 2013, and reallocating an additional $3 million of
reductions to the La Preciosa project.

Capital Spending Reductions:

— Eliminated or deferred $24 million of capital projects scheduled for 2013
resulting in full-year expected capital expenditures of $100-$110 million,
an 18% decrease compared to prior guidance of $125-$140 million.

— Targeting 2014 total capital expenditures of less than $80 million in
order to maximize company-wide net cash flow.

— On-track to complete the San Bartolomé process plant expansion
project 20%, or $3.7 million, below budget.

Working Capital Improvements:

— Reduced supplies and materials inventory by $12 million in the first half
of 2013.

— Targeting $30 million of additional working capital reductions during the
remainder of 2013 in order to maximize net cash flow.

“After a difficult period for commodity prices since mid-April, silver and gold prices appear to be finding a bottom recently, although we expect continued volatility throughout the remainder of the year. We are seeing modest increases in industrial demand for silver and we believe the overarching rationale for investment demand for silver and gold remains intact. Looking ahead, we anticipate supplies of both silver and gold will tighten as a result of project deferrals, difficult capital markets, reduced exploration expenditures, and greater geopolitical and community-related challenges. Supply from scrap has already shown signs of significant decline, all of which should be supportive of stronger prices over the long-term.”

Table 1: Financial Highlights (Unaudited)



(All amounts in

millions, except per

share amounts, average

realized prices and                 1Q     Quarter      4Q               2Q

gold ounces sold)        2Q 2013   2013    Variance    2012   3Q 2012   2012

                         ——-  ——  ———-  ——  ——-  ——

Sales of Metal           $204.5   $171.8     19%      $205.9  $230.6   $254.4

Production Costs         $142.9   $ 88.8     61%      $107.4  $125.0    131.8

Adjusted Earnings (1)    $(34.6)  $  6.8   (609%)     $ 26.2  $ 25.8     28.0

Adjusted Earnings Per

 Share(1)                $(0.35)  $ 0.08   (538%)     $ 0.29  $ 0.29   $ 0.31

Net Income               $(35.0)  $ 12.3   (385%)     $ 37.6  $(15.8)    23.0

Earnings Per Share       $(0.35)  $ 0.14   (350%)     $ 0.42  $(0.18)  $ 0.26

Cash Flow From

 Operating Activities    $ 63.3   $ 12.9    391%      $ 61.7  $ 79.7   $113.2

Capital Expenditures     $ 27.2   $ 12.8    113%      $ 21.8  $ 30.0     32.2

Cash, Cash Equivalents

 & Short-Term

 Investments             $249.5   $332.8    (25%)     $126.4  $143.6    200.3

Total Debt (net of debt

 discount)               $305.3   $305.3     –%      $ 48.1  $ 47.4    118.8

Weighted Average Shares    99.8     89.9     11%        89.1    89.4     89.6

Average Realized Price
Per Ounce – Silver $22.86 $30.30 (25%) $32.52 $30.09 $29.28
Average Realized Price
Per Ounce – Gold $1,416 $1,630 (13%) $1,709 $1,654 $1,610
Silver Ounces Sold 5.2 3.1 68% 3.6 4.5 5.6
Gold Ounces Sold 63,389 51,926 22% 55,565 59,156 59,579

Included in second quarter net loss was a $32 million one-time charge ($22 million non-cash) for the settlement of the Rochester claims dispute litigation and a $17.2 million non-cash writedown of the Company’s strategic investments. Both of these non-recurring items were excluded from Coeur’s non-U.S. GAAP metric of adjusted earnings(1) . Adjusted earnings(1) were $(34.6) million, or $(0.35) per share, in the second quarter 2013, compared with $28.0 million, or $0.31 per share, in the second quarter 2012 and $6.8 million or $0.08 per share in the first quarter 2013.

On a U.S. GAAP basis, the Company realized a net loss of $35.0 million, or $0.35 per share, in the second quarter 2013 compared with net income of $23.0 million, or $0.26 per share, in the second quarter 2012 and $12.3 million, or $0.14 per share, in the first quarter 2013. Net income for the second quarter 2013 included a positive non-cash fair value adjustment of $66.8 million. The positive fair value adjustment in the second quarter 2012 was $16.0 million. Fair value adjustments are driven primarily by lower or higher gold prices, which decrease or increase, respectively, the estimated future liabilities related to a gold royalty obligation at Palmarejo.

Table 2: Operational Highlights: Production

(silver ounces Quarter
in thousands) 2Q 2013 1Q 2013 Variance Q4 2012 Q3 2012 Q2 2012
————– ————– ———- —— ————– ————– ————–
Silver Gold Silver Gold Silver Gold Silver Gold Silver Gold Silver Gold
————— —— —— —— —— ———- —— —— —— —— —— —— ——
Palmarejo 2,045 28,191 1,646 22,965 24% 23% 1,554 19,998 1,833 23,702 2,366 31,258
San
Bartolomé 1,523 — 1,391 — 9% n.a. 1,343 — 1,526 — 1,470 —
Rochester 844 9,404 648 8,742 30% 8% 828 12,055 819 10,599 713 10,120
Martha — — — — n.a. n.a. — — 93 76 108 97
Kensington — 23,162 — 25,206 n.a. (8%) — 28,717 — 24,391 — 21,572
Endeavor 221 — 150 — 47% n.a. 106 — 140 — 240 —
—— —— —— —— — —- —— —— —— —— —— —— ——
Total 4,633 60,757 3,835 56,913 21% 7% 3,831 60,770 4,411 58,768 4,897 63,047

Table 3: Operational Highlights: Cash Operating Costs Per Ounce (1)

2Q 1Q Quarter Q4 Q3
2013 2013 Variance 2012 2102 Q2 2012
—— —— ———- —— —— ———
Palmarejo $ 3.25 $ 2.20 (48%) $ 7.55 $ 3.75 $(0.85)
San
Bartolomé 12.89 13.27 (3%) 13.97 12.13 11.05
Rochester 14.75 13.54 9% 2.17 9.58 9.83
Martha — — n.a. — 48.12 55.07
Endeavor 10.62 17.30 (39%) 19.92 15.97 17.50
—— —— —- —— —— ——
Total $ 8.86 $ 8.73 1% $ 8.97 $ 9.05 $ 6.41
Kensington $1,115 $1,055 6% $1,065 $1,298 $1,348

Palmarejo, Mexico – Rebounding Production Due to Higher Grades; Expected Recovery Rate Improvements

— Palmarejo produced 2.0 million ounces of silver and 28,191 ounces of gold
at cash operating costs of $3.25 per silver ounce1 for the second
quarter. In the first quarter of 2013, Palmarejo produced 1.6 million
ounces of silver and 22,965 ounces of gold at cash operating costs of
$2.20 per silver ounce1.

— Silver and gold ore grades from both the open pit and from underground
operations improved compared to the first quarter 2013, and these grades
are expected to be maintained throughout the remainder of the year.
Recovery rates are expected to increase 5%-10% by the end of the year.

— Ongoing cost reduction initiatives at Palmarejo have lowered cash
operating costs in the first half of 2013 compared to plan. The
initiatives include reductions in outside services, contract services,
reagent and consumable consumption, as well as more favorable pricing on
key consumables, shorter waste haul distance, and greater cost efficiency
within the maintenance systems.

— The acquisition of the La Curra property potentially adds value as an
on-strike extension of Las Animas, part of the Guadalupe system, outside
the property boundary subject to the Franco-Nevada gold production
royalty. Mine modeling of Las Animas as an open pit operation continues
with further drilling planned for the remainder of the year.

— Guadalupe underground development has now reached the ore horizon. A vent
raise to connect the upper and lower parts of the mine is planned for
2014.

— Mining is ongoing in the upper ore zones in 76 Clavo. Mining in 108 Clavo
continues to produce strong silver grade and higher gold grades in 2013.
Open pit expansion into the Tucson/Chapotillo is progressing and open pit
ore grade material from this new area is being modeled for mining in
early 2014.

— Sales and cash flow from operating activities totaled $86.2 million and
$37.2 million, respectively, in the second quarter 2013.

— Capital expenditures of $9.2 million were incurred at Palmarejo in the
second quarter on underground mining equipment and for underground mine
development at Palmarejo and Guadalupe.

San Bartolomé, Bolivia – Consistent Performance; Mill Expansion On-Track

— San Bartolomé produced 1.5 million ounces of silver at cash
operating costs of $12.89 per silver ounce1. In the first quarter of
2013, San Bartolomé produced 1.4 million ounces of silver at cash
operating costs of $13.27 per silver ounce1.

— The Company is in the process of increasing processing capacity
approximately 10%-15% during 2013. This expansion is expected to have a
less than two-year payback and increase the mine’s annual production to
over 6.0 million ounces of silver for the next several years. This
expansion project remains on-schedule for completion by the end of the
year and is expected to be completed 20% below budgeted levels.

— Sales and cash flow from operating activities totaled $49.2 million and
$32.8 million, respectively, in the second quarter 2013.

— Capital expenditures were $3.2 million during the second quarter and
consisted primarily of the tailings and process plant expansion project.

Rochester, Nevada – Slow First Half of 2013; Anticipate Expansion Announcement by Year-End

— Rochester produced 843,845 ounces of silver and 9,404 ounces of gold, up
30% and 8% respectively, over the first quarter 2013. This was a smaller
rebound than expected due to poor crusher performance during the second
quarter.

— Cash operating costs per silver ounce1 were $14.75, which were 9% higher
than the first quarter 2013.

— Ongoing cost reductions at Rochester include reductions in reagent and
consumable consumption, contract services, and power, as well as shorter
haul distances. Year-to-date, Rochester’s operating costs remain below
planned levels. Cash operating costs per silver ounce1 have been
negatively impacted by the lower than planned production levels.

— The Company is investing approximately $4.0 million during 2013 to expand
the capacity of the primary crusher from 9.0 million tons to 14.0 million
tons. Monthly crusher throughput is expected to accelerate in the second
half of 2013, leading to higher anticipated silver and gold production in
the second half of 2013.

— In addition, the Company is expanding the mine’s heap leach capacity to
approximately 67.0 million tons at an estimated capital cost of
approximately $15.0 million. This planned expansion is designed to
accommodate sustained higher production rates driven by the processing of
ore contained in historic stockpiles. These stockpiles were created
during the mine’s 26 year operating history when gold and silver prices
were significantly lower than current market prices. Coeur expects
further reserve increases from this and its ongoing exploration efforts
on the stockpiles, and intends to announce future expansion plans at
Rochester later in 2013.

— Effective June 27, 2013, Coeur settled the outstanding claims dispute at
Rochester. In connection with the settlement, Coeur acquired the disputed

mining claims for $10 million in cash plus a 3.4% net smelter returns
royalty covering 39.4 million silver equivalent ounces beginning January
1, 2014.

— In July, Rochester was recognized for outstanding achievement in safety
by the Nevada Mining Association, which will present Rochester with its
2013 1st Place Safety Award for the Surface Operations, Medium Mine
category.

— Sales totaled $34.9 million in the second quarter compared to $39.5
million in the first quarter. Cash flow from operating activities of
$(3.4) million in the second quarter 2013 declined from $5.6 million in
the first quarter due to the $10 million cash portion of the disputed
claims settlement, an increase in ore placed on the leach pad (the
related costs of which are added to inventory and subsequently expensed
as ounces are recovered from the leach pad), and also due to lower metal
prices.

— Capital expenditures of $6.6 million during the quarter were spent on
process plant equipment, the Stage III leach pad expansion, and equipment
related to the crusher expansion.

Kensington, Alaska – Improving Gold Grade Expected in Second Half of 2013

— Kensington produced 23,162 ounces of gold, a decrease of 8% from the
first quarter 2013. Cash operating costs per ounce1were $1,115, compared
to $1,055 in the first quarter 2013.

— Average mill head grade of 0.18 oz/t was 10% lower than the first quarter
2013 due to the processing of lower-grade stockpile ore. The gold grade
is expected to gradually improve during the second half of 2013 as
higher-grade stopes are mined and processed, which we expect will lower
unit operating costs 20% compared to the first half of the year.

— Additional cost reductions targeted for the second half of the year
include reductions in contract services and lower underground backfill
costs due to lower prices for backfill material.

— Sales and cash flow from operating activities totaled $30.9 million and
$7.6 million, respectively, for the second quarter 2013.

— Capital expenditures of $7.4 million in the second quarter were spent
primarily on underground capital development and reserve category
drilling.

La Preciosa, Mexico – PEA Completed and Feasibility Work to Begin

— The results of the PEA provide a solid foundation from which the Company
will seek to enhance the project’s economics given current silver and
gold prices. The PEA indicated an estimated mine life of 17 years,
initial capital expenditures of $348 million, and an average annual
production rate of 9.1 million ounces over the first 14 years.

— Coeur will now commence a full feasibility study, along with infill and
development drilling. Upon completion of this work in mid-2014, the
Company and its Board will evaluate the economics of the optimized
project, assess the silver and gold market, and determine whether to
proceed with construction.

— A strong development team continues to be established at the corporate
office and in Durango, Mexico.

— Expenditures in the second half of 2013 are expected to be approximately
$15 million, with $3 million for exploration and $12 million for
sustainability projects within the community, engineering, access road,
and land acquisitions.

Exploration Update

During the second quarter, the Company invested $6.8 million in expensed exploration for discovery of new mineralization and $3.0 million in capitalized exploration for definition of new mineralization.

Coeur’s exploration program utilized up to 11 drill rigs: five drills at Palmarejo, three at Kensington (including one drill devoted to definition drilling), two in Argentina (Joaquin and Lejano projects), and one at Rochester.

Palmarejo, Mexico

— Exploration for discovery of new mineralization was conducted around the
Palmarejo surface and underground mine area on new targets generated in
2012 and early 2013. Significant results were obtained from this work,
notably hole T4DH-002 from drilling of open pit targets and hole TTDH-003
from drilling of underground targets, which intersected 8.1 meters (true
width) grading 352 grams per metric ton (g/t) of silver and 3.4 g/t of
gold, and 2.5 meters true grading 720 g/t silver and 5.7 g/t gold,
respectively. In addition, drilling underground in the 108 and
Interclavos zones, part of the long La Blanca structure, returned
favorable results and is expected to contribute to the expansion of
Palmarejo’s underground-minable reserves.

— New drilling was completed at El Salto, bordering the Las Animas surface
minable reserves, with positive initial results. A phase 2 drilling
program is underway and the Company has commenced evaluation of the new
La Curra property situated nearby to the southeast. Favorable results
from this exploration would have a positive impact on the surface-minable
Las Animas portion of the more than 2.6 kilometer-long (1.6 miles)
Guadalupe vein system. Notable results include hole TDGH-563 with 3.8
meters true width mineralization grading 478 g/t of silver and 1.29 g/t
of gold.

— The first drilling from underground positions started on Guadalupe Norte.
Assays are pending and drilling will continue as this part of the
Guadalupe mine is developed.

Kensington, Alaska

— Exploration work to discover new mineralization continued in the second
quarter. As part of this work, surface drilling began on the Jualin area
(a historic mine south of main Kensington). This drilling targeted the
number 4 vein, a zone of auriferous quartz and sulfide veining situated
about 1,500 feet (460 meters) due south of the mill facility. Targets
selected to discover and define new mineralization are focusing on those,
like Jualin and Raven, with the potential to be higher-grade than the
current reserves.

— Exploration to define and expand known mineralized zones and help expand
reserves focused on the southern margins of lower Zone 10 and Zone 50 in
main Kensington as well as the northern extent of lower Zone 10. Initial
results from widely-spaced drilling have shown new gold mineralization
extends more than 200 feet from the south limits of the current mineral
reserves.

— In addition, underground drilling was conducted on the Ann target and the
upper extension of Zone 10 at main Kensington.

Rochester, Nevada

   — Drilling was performed to expand and define grades and tons of existing

      stockpiled material in the second quarter. The drilling returned

      favorable results from the Limerick, South, and North areas. Results from

      23 new drill holes were received this quarter. Results from hole

      LMD13-061 with 120 feet grading 0.67 ounces per short ton (oz/t) of

      silver and 40 feet of 1.52 oz/t of silver from Limerick and SRD13-109 in

      the South stockpile which returned 70 feet grading 0.38 oz/t silver and

      150 feet grading 0.56 oz/t of silver.

Coeur is reducing its exploration spending by 17%, or approximately $3 million during the remainder of 2013, and reallocating an additional $3 million of reductions to the La Preciosa project.

2013 Outlook

Coeur’s estimated 2013 consolidated silver and gold production guidance remains unchanged as shown in Table 4 below, and compares to 2012 silver production of 18.0 million ounces and gold production of 226,486 ounces.

Coeur has maintained its full-year 2013 projected cash operating costs of $9.50 – $10.50 per silver ounce(1) , which reflects ongoing cost reduction efforts that are expected to offset lower gold prices used to calculate by-product credits. Although the Company anticipates Kensington’s second half cash operating costs per gold ounce(1) to be 20% lower than the first half of the year, full-year 2013 guidance for Kensington is being revised upward slightly to $950 – $1,000 (compared to prior guidance of $900 – $950). The midpoint of this range is 32% below 2012 cash operating costs per gold ounce(1) of $1,358 at Kensington.

Table 4: 2013 Production Outlook



(silver ounces in thousands)     Country        Silver           Gold

—————————–  ————  ————-  —————

Palmarejo                      Mexico         7,700-8,300   104,000-109,000

San Bartolomé             Bolivia        5,600-5,900         —

Rochester                      Nevada, USA    4,100-4,500    38,000-42,000

Endeavor                       Australia        600-800           —

Kensington                     Alaska, USA        —        108,000-114,000

—————————–  ————  ————-  —————

Total                                        18,000-19,500  250,000-265,000

===========================================  =============  ===============

Conference Call Information

Coeur will hold a conference call and webcast at www.coeur.com to discuss the Company’s second quarter 2013 results at 1 p.m. Eastern time on August 8, 2013.



Dial-In Numbers:                   (855) 546-8317 (U.S. and Canada)

                                   (660) 422-4718 (International) 
Conference ID: 217 88 354 
A replay of the call will be available on Coeur’s website through August 22,

2013. 
Replay number: (855) 859-2056 (US and Canada) 
International replay: (404) 537-3406 (International) 
Conference ID: 217 88 354 
(1.) (Adjusted earnings and cash operating costs are non-GAAP measures.

Please see tables in the Appendix for the reconciliation to U.S. GAAP.

Total debt includes short and long-term indebtedness and excludes

capital leases and royalty obligations.)

About Coeur

Coeur Mining, Inc. is the largest U.S.-based primary silver producer and a growing gold producer. The Company has four precious metals mines in the Americas generating strong production, sales, and cash flow. Coeur produces from its wholly owned operations: the Palmarejo silver-gold mine in Mexico, the San Bartolomé silver mine in Bolivia, the Rochester silver-gold mine in Nevada and the Kensington gold mine in Alaska. Coeur has a non-operating interest in the Endeavor silver-gold mine in Australia. The Company has two feasibility stage projects, the Joaquin silver project in Argentina and the La Preciosa silver-gold project in Mexico. In addition, Coeur conducts ongoing exploration activities in Mexico, Argentina, Nevada, Alaska and Bolivia. The Company owns strategic investment positions in eight silver and gold development companies with projects in North and South America.

Cautionary Statements

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada, including statements regarding anticipated operating results, production levels, operating costs, exploration results, and expected results of initiatives to reduce costs and capital expenditures, enhance revenue, maximize net cash flow, and manage working capital, continued volatility in gold and silver prices, industrial demand, and supply levels. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Coeur’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the risk that permits necessary for the planned Rochester expansion may not be obtained, the risks and hazards inherent in the mining business (including risks inherent in developing large-scale mining projects, environmental hazards, industrial accidents, weather or geologically related conditions), changes in the market prices of gold and silver and a sustained lower price environment, the uncertainties inherent in Coeur’s production, exploratory and developmental activities, including risks relating to permitting and regulatory delays, ground conditions, grade variability, any future labor disputes or work stoppages, the uncertainties inherent in the estimation of gold and silver ore reserves, changes that could result from Coeur’s future acquisition of new mining properties or businesses, reliance on third parties to operate certain mines where Coeur owns silver production and reserves, the loss of any third-party smelter to which Coeur markets silver and gold, the effects of environmental and other governmental regulations, the risks inherent in the ownership or operation of or investment in mining properties or businesses in foreign countries, Coeur’s ability to raise additional financing necessary to conduct its business, make payments or refinance its debt, as well as other uncertainties and risk factors set out in filings made from time to time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including, without limitation, Coeur’s most recent reports on Form 10-K and Form 10-Q. Actual results, developments and timetables could vary significantly from the estimates presented. Readers are cautioned not to put undue reliance on forward-looking statements. Coeur disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, Coeur undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Coeur, its financial or operating results or its securities.

The PEA referenced in this news release is preliminary in nature and it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves and there is no certainty that the results reflected in the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for minability, selectivity, mining loss and dilution. There is no certainty that the inferred mineral resources will be converted to the measured and indicated categories or that the measured and indicated mineral resources will be converted to the proven and probable mineral reserve categories.

Donald J. Birak, Coeur’s Senior Vice President of Exploration and a qualified person under Canadian National Instrument 43-101, reviewed and approved the scientific and technical disclosures concerning Coeur’s mineral projects contained herein. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources, as well as data verification procedures and a general discussion of the extent to which the estimates may be affected by any known environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant factors, please see the Technical Reports for each of Coeur’s properties as filed on SEDAR at www.sedar.com.

Cautionary Note to U.S. Investors-The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We may use certain terms in public disclosures, such as “measured,” “indicated,” “inferred” and “resources,” that are recognized by Canadian regulations, but that SEC guidelines generally prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K which may be secured from us, or from the SEC’s website at http://www.sec.gov.

Non-U.S. GAAP Measures

We supplement the reporting of our financial information determined under United States generally accepted accounting principles (U.S. GAAP) with certain non-U.S. GAAP financial measures, including adjusted earnings and cash operating costs. We believe that these adjusted measures provide meaningful information to assist management, investors and analysts in understanding our financial results and assessing our prospects for future performance. We believe these adjusted financial measures are important indicators of our recurring operations because they exclude items that may not be indicative of, or are unrelated to our core operating results, and provide a better baseline for analyzing trends in our underlying businesses. We believe adjusted earnings and cash operating costs are important measures in assessing the Company’s overall financial performance.

Table 5: Operating Statistics from Continuing Operations – (Unaudited):
————————————————————————————————

Three months ended June 30, June 30,
————& 2013 2012 2013 2012
———– Silver
Operations:
————& Palmarejo
Tons milled 570,322 Ore grade/Ag
oz 4.69 5.74 4.17 5.94
Ore grade/Au
oz 0.06 0.07 0.05 0.07
Recovery/Ag
oz 76.5% 84.2% 77.5% 80.2%
Recovery/Au
oz 81.2% 92.0% 84.9% 92.6%
Silver
production
ounces 2,044,967 2,365,484 Gold
production
ounces 28,191 31,258 51,157 62,338
Cash
operating
cost/oz $ 3.25 $ (0.85) Cash cost/oz $ 3.25 Total
production
cost/oz $ 20.63 $ 17.28 San
Bartolomé
Tons milled 424,310 Ore grade/Ag
oz 3.98 4.26 4.03 4.43
Recovery/Ag
oz 90.3% 88.3% 90.5% 89.8%
Silver
production
ounces 1,523,262 1,470,342 Cash
operating

production
cost/oz $ 17.21 Martha
Tons milled — Ore grade/Ag
oz — Ore grade/Au
oz — Recovery/Ag
oz Recovery/Au
oz Silver
production
ounces — Gold
production
ounces — Cash
operating
cost/oz $ — Cash cost/oz $ — Total
production
cost/oz $ — Rochester
Tons milled 2,457,423 Ore grade/Ag
oz 0.58 Ore grade/Au
oz 0.003 Recovery/Ag
oz 59.7% Recovery/Au
oz 141.4% Silver
production
ounces 843,845 Gold
production
ounces 9,404 Cash
operating
cost/oz $ 14.75 Cash cost/oz $ 15.39 Total
production
cost/oz $ 18.15 Endeavor
Tons milled 198,517 Ore grade/Ag
oz 2.73 Recovery/Ag
oz 40.9% Silver
production
ounces 221,268 Cash
operating
cost/oz $ 10.62 Cash cost/oz $ 10.62 Total
production
cost/oz $ 16.13 Six months ended
#8212;—————– —————————————-
————— ————— —————
#8212;-
489,924 1,143,492 1,018,467
3,691,365 4,848,298
$ 2.78 $ (1.58)
$ (0.85) $ 2.78 $ (1.58)
$ 20.41 $ 15.10
391,005 799,295 769,109
2,914,361 3,061,634
size="4"> cost/oz $ 12.89 $ 11.05 $ 13.07 $ 10.62
$ 12.04 $ 14.05 $ 11.76
$ 14.89 $ 17.65 $ 14.44
39,199 — 73,268
3.52 — 3.94
— — —
–% 78.2% –% 79.8%
–% 72.4% –% 68.6%
107,895 — 230,688
97 — 181
$ 55.07 $ — $ 50.50
$ 56.21 $ — $ 51.39
$ 62.30 $ — $ 56.74
2,268,896 4,897,180 4,278,414
0.63 0.5488 —
0.005 0.003 0.005
49.8% 55.5% 45.7%
84.0% 123.5% 74.9%
712,706 1,491,434 1,154,043
10,120 18,146 15,412
$ 9.83 $ 14.23 $ 15.00
$ 11.45 $ 15.76 $ 16.54
$ 14.66 $ 18.78 $ 20.02
201,057 393,035 396,903
3.31 2.17 3.33
36.1 % 43.4 % 36.9%
240,168 371,012 488,126
$ 17.50 $ 13.31 17.07
$ 17.50 $ 13.31 17.07
$ 24.13 $ 18.82 23.70

Gold Operation:
—————-
Kensington
Tons milled 127,987 97,794 257,044 141,730
Ore grade/Au
oz 0.18 0.23 0.19 0.22
Recovery/Au
oz 98.2% 94.2 % 97.1 % 94.0%
Gold
production
ounces 23,162 21,572 48,368 29,016
Cash
operating
cost/oz $ 1,115 $ 1,348 $ 1,083 $ 1,697
Cash cost/oz $ 1,115 $ 1,348 $ 1,083 $ 1,697
Total
production
cost/oz $ 1,687 $ 1,799 $ 1,634 $ 2,260
CONSOLIDATED
PRODUCTION
TOTALS
Total silver
ounces 4,633,342 4,896,595 8,468,172 9,782,789
Total gold
ounces 60,757 63,047 117,671 106,947
Silver
Operations:
—————-
Cash
operating
cost per oz
– silver $ 8.86 $ 6.41 $ 8.80 $ 6.35
Cash cost
per oz –
silver $ 9.28 $ 6.97 $ 9.41 $ 6.91
Total
production
cost oz –
silver $ 18.84 $ 17.51 $ 19.11 $ 16.88
Gold Operation:
—————-
Cash
operating
cost per oz
– gold $ 1,115 $ 1,348 $ 1,083 $ 1,697
Cash cost
per oz –
gold $ 1,115 $ 1,348 $ 1,083 $ 1,697
Total
production
cost per oz
– gold $ 1,687 $ 1,799 $ 1,634 $ 2,260
CONSOLIDATED
SALES TOTALS
Silver
ounces
sold 5,228,270 5,601,953 8,304,805 9,892,001
Gold ounces
sold 63,389 59,579 115,315 98,464
Realized
price per
silver
ounce $ 22.86 $ 29.28 $ 25.61 $ 30.72
Realized
price per
gold ounce $ 1,416 $ 1,610 $ 1,512 $ 1,646

Table 6:
COEUR MINING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
—————————————————————————-

June 30, December 31,
2013 2012
———————- —————–
ASSETS (In thousands, except share data)
CURRENT ASSETS
Cash and cash equivalents $ 249,531 $ 125,440
Investments — 999
Receivables 64,607 62,438
Ore on leach pad 28,880 22,991
Metal and other inventory 148,286 170,670
Deferred tax assets 2,620 2,458
Restricted assets 660 396
Prepaid expenses and other 17,945 20,790
—————— ————–
512,529 406,182
NON-CURRENT ASSETS
Property, plant and equipment,
net 660,333 683,860
Mining properties, net 2,357,689 1,991,951
Ore on leach pad 26,861 21,356
Restricted assets 24,468 24,970
Marketable securities 16,008 27,065
Receivables 38,539 48,767
Debt issuance costs, net 11,890 3,713
Deferred tax assets 969 955
Other 17,430 12,582
—————— ————–
TOTAL ASSETS $ 3,666,716 $ 3,221,401
============== =============
LIABILITIES AND STOCKHOLDERS’
EQUITY
CURRENT LIABILITIES
Accounts payable $ 57,446 $ 57,482
Accrued liabilities and other 9,369 10,002
Accrued income taxes 8,662 27,108
Accrued payroll and related
benefits 15,576 21,306
Accrued interest payable 10,237 478
Debt and capital leases 5,485 55,983
Royalty obligations 44,605 65,104
Reclamation and mine closure 473 668
Deferred tax liabilities 121 121
—————— ————–
151,974 238,252
NON-CURRENT LIABILITIES
Debt and capital leases 306,578 3,460
Royalty obligations 86,304 141,879
Reclamation and mine closure 35,708 34,670
Deferred tax liabilities 711,550 577,488
Other long-term liabilities 23,110 27,372
—————— ————–
1,163,250 784,869
COMMITMENTS AND CONTINGENCIES
(Notes 11, 12, 13, 16, 17 and
20)
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 per
share; authorized 150,000,000
shares, issued and outstanding
101,567,355 at June 30, 2013 and
90,342,338 at December 31, 2012 1,016 903
Additional paid-in capital 2,770,953 2,601,254
Accumulated deficit (418,926) (396,156)
Accumulated other comprehensive
loss (1,551) (7,721)

                                   ——————      ————–

                                            2,351,492           2,198,280

                                   ——————      ————–

TOTAL LIABILITIES AND

 STOCKHOLDERS’ EQUITY               $       3,666,716      $    3,221,401

                                       ==============       ============= 
 Table 7:

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

—————————————————————- 
 Three months ended Six months ended

June 30, June 30,

2013 2012 2013 2012

——— ——— ——— ———–

(In thousands, except share data)

Sales of metal $204,525 $254,406 $376,322 $458,970

Production costs

applicable to

sales (142,924) (131,823) (231,708) (224,377)

Depreciation,

depletion and

amortization (57,653) (61,024) (108,089) (113,616)

——– ——– ——– ——–

Gross profit 3,948 61,559 36,525 120,977

COSTS AND EXPENSES

General and

administrative 15,026 8,594 25,253 16,190

Exploration 6,774 6,305 13,615 12,872

Litigation

settlement 32,046 — 32,046 —

Loss on impairment

and other 86 4,813 205 4,813

Pre-development,

care, maintenance

and other 973 273 5,458 1,341

——– ——– ——– ——–

Total cost and

expenses 54,905 19,985 76,577 35,216

——– ——– ——– ——–

OPERATING INCOME

(LOSS) (50,957) 41,574 (40,052) 85,761

OTHER INCOME AND

EXPENSE

Fair value

adjustments, net 66,754 16,039 84,550 (7,074)

Other than

temporary

impairment of

marketable

securities (17,192) — (17,227) —

Interest income

and other, net 419 (3,221) 4,275 1,786

Interest expense,

net of

capitalized

interest (10,930) (7,557) (20,662) (14,227)

——– ——– ——– ——–

Total other

income and

expense, net 39,051 5,261 50,936 (19,515)

——– ——– ——– ——–

Income (loss)

before income

taxes (11,906) 46,835 10,884 66,246

Income tax

provision (23,134) (23,862) (33,654) (39,298)

——– ——– ——– ——–

NET INCOME (LOSS) $(35,040) $ 22,973 $(22,770) $ 26,948

======= ======= ======= =======

INCOME (LOSS) PER

SHARE

Basic $ (0.35) $ 0.26 $ (0.24) $ 0.30

======= ======= ======= =======

Diluted $ (0.35) $ 0.26 $ (0.24) $ 0.30

======= ======= ======= =======

Weighted average

number of shares

Basic 99,833 89,631 94,918 89,611

Diluted 99,833 89,733 94,918 89,777 
 Table 8:

COEUR MINING, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

—————————————————————- 
 Three months ended Six months ended

June 30, June 30,

2013 2012 2013 2012

——— ——— ——— ———–

(In thousands) (In thousands)

CASH FLOWS FROM

OPERATING

ACTIVITIES:

Net income (loss) $(35,040) $ 22,973 $(22,770) $ 26,948

Add (deduct)

non-cash items

Depreciation,

depletion and

amortization 57,653 61,024 108,089 113,616

Accretion of

discount on

debt and

other assets,

net 484 808 1,531 1,605

Accretion of

royalty

obligation 4,139 5,492 7,809 10,072

Deferred

income taxes 12,123 9,690 19,548 17,368

Fair value

adjustments,

net (65,754) (17,759) (81,795) 4,018

Loss on

foreign

currency

transactions 148 70 (317) 369

Litigation

settlement 22,046 — 22,046 —

Share-based

compensation 1,617 1,033 2,713 3,170

Loss on sale

of assets (264) 264 (1,132) 264

Other than

temporary

impairment of

marketable

securities 17,192 — 17,227 —

Loss on

impairment 86 4,813 205 4,813

Other non-cash

charges — (40) — (40)

Changes in

operating assets

and liabilities:

Receivables

and other

current

assets 4,401 10,319 8,647 7,365

Prepaid

expenses and

other 2,930 (2,857) 411 1,916

Inventories 31,483 3,097 10,990 (21,625)

Accounts

payable and

accrued

liabilities 10,094 14,276 (16,930) (39,655)

——– ——– ——– ——–

CASH PROVIDED BY

(USED IN)

OPERATING

ACTIVITIES 63,338 113,203 76,272 130,204

——– ——– ——– ——–

CASH FLOWS FROM

INVESTING

ACTIVITIES

Purchase of

short term

investments

and

marketable

securities (683) (6,831) (5,332) (7,866)

Proceeds from

sales and

maturities of

short term

investments 1,522 683 6,344 20,701

Capital

expenditures (27,201) (32,238) (40,028) (63,885)

Acquisition of

Orko Silver

Corporation (101,648) — (113,214) —

Other 254 995 1,209 1,180

——– ——– ——– ——–

CASH PROVIDED BY

(USED IN)

INVESTING

ACTIVITIES (127,756) (37,391) (151,021) (49,870)

——– ——– ——– ——–

CASH FLOWS FROM

FINANCING

ACTIVITIES:

Proceeds from

issuance of

notes and bank

borrowings — — 300,000 —

Payments on

long-term

debt, capital

leases, and

associated

costs (1,857) (8,794) (57,197) (14,244)

Payments on

gold

production

royalty (15,480) (19,287) (30,929) (40,660)

Share

repurchases — — (12,557) —

Other (25) (217) (477) (1,045)

——– ——– ——– ——–

CASH PROVIDED BY

(USED IN)

FINANCING

ACTIVITIES (17,362) (28,298) 198,840 (55,949)

——– ——– ——– ——–

INCREASE IN CASH

AND CASH

EQUIVALENTS (81,780) 47,514 124,091 24,385

Cash and cash

equivalents

at beginning

of period 331,311 151,883 125,440 175,012

——– ——– ——– ——–

Cash and cash

equivalents

at end of

period $249,531 $199,397 $249,531 $199,397

======= ======= ======= ======= 
 Table 9:

Adjusted Earnings Reconciliation – (Unaudited)

———————————————————————- 
(in thousands) 2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012

——— ——– ——– ——— ———-

Net income

(loss) $(35,040) $12,270 $37,550 $(15,821) $22,973

Share based

compensation 1,617 1,096 1,476 3,364 1,033

Deferred income

tax provision 12,123 7,425 3,738 (4,942) 9,690

Accretion of

royalty

obligation 4,139 3,670 3,946 4,276 5,492

Fair value

adjustments,

net (66,754) (17,796) (21,235) 37,648 (16,039)

Litigation

settlement 32,046 — — — —

Other than

temporary

impairment of

marketable

securities 17,192 — — — —

Loss on

impairment 86 119 (281) 1,293 4,813

Loss on debt

extinguishments — — 1,036 — —

—————- ——– ——- ——- ——– ——-

Adjusted

Earnings $(34,591) $ 6,784 $26,230 $ 25,818 $27,962

================ ======= ====== ====== ======= ====== 
 Table 10:

Results of Operations by Mine – Palmarejo – (Unaudited)

———————————————————————————– 
in millions

of US$ 2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012

———— ———— ———— ———— ————

Sales of

metal $ 86.2 $ 57.4 $ 79.4 $ 102.6 $ 136.4

Production

costs $ 55.2 $ 26.7 $ 40.4 $ 48.7 $ 62.5

Operating

income $ (7.7) $ (0.2) $ 4.5 $ 17.7 $ 29.5

Cash flow

from

operating

activities $ 37.2 $ 10.1 $ 22.9 $ 58.2 $ 90.5

Capital

expenditures $ 9.2 $ 5.3 $ 8.8 $ 11.3 $ 11.2

Gross profit $ (4.6) $ 1.8 $ 6.8 $ 20.0 $ 31.1
Gross margin (5.3)% 3.1% 8.7% 19.5% 22.8%

2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012
———— ———— ———— ———— ————
Underground
Operations:
Tons mined 183,267 151,232 139,925 143,747 162,820
Average
silver grade
(oz/t) 4.59 4.22 4.70 6.13 8.91
Average gold
grade
(oz/t) 0.11 0.09 0.08 0.09 0.14
Surface
Operations:
Tons mined 363,758 388,651 465,498 424,380 321,758
Average
silver grade
(oz/t) 4.95 3.45 2.62 2.79 4.14
Average gold
grade
(oz/t) 0.04 0.03 0.02 0.03 0.04
Processing:
Total tons
milled 570,322 573,170 563,123 532,775 489,924
Average
recovery
rate — Ag 76.5% 78.8% 84.2% 90.0% 84.2%
Average
recovery
rate — Au 81.2% 90.1% 91.4% 102.5% 92.0%
Silver
production –
oz (000’s) 2,045 1,646 1,555 1,833 2,365
Gold
production –
oz 28,191 22,965 19,998 23,702 31,258
Cash
operating
costs/Ag Oz $ 3.25 $ 2.20 $ 7.55 $ 3.75 $ (0.85)

Table 11:
Results of Operations by Mine – San Bartolomé – (Unaudited)
———————————————————————————–

in millions
of US$ 2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012
———— ———— ———— ———— ————
Sales of
metal $ 49.2 $ 33.1 $ 37.0 $ 46.2 $ 53.4
Production
costs $ 32.8 $ 15.7 $ 15.1 $ 19.9 $ 22.8
Operating
income $ 11.5 $ 8.9 $ 17.5 $ 22.0 $ 26.6
Cash flow
from
operating
activities $ 32.8 $ (5.4) $ 9.5 $ 19.8 $ 31.0
Capital
expenditures $ 3.2 $ 0.5 $ 3.3 $ 4.4 $ 7.8
Gross profit $ 11.5 $ 12.7 $ 17.6 $ 22.1 $ 26.5
Gross margin 23.3% 38.4% 47.7% 47.8% 49.6%

2Q 2013 1Q 2013 4Q 2012 3Q 2012 1Q 2012
———— ———— ———— ———— ————
Tons milled 424,310 374,985 363,813 344,349 391,005
Average
silver grade
(oz/t) 4.0 4.1 4.2 4.9 4.3
Average
recovery
rate 90.3% 90.6% 88% 90.3% 88.3%
Silver
production
(000’s) 1,523 1,391 1,343 1,526 1,470
Cash
operating
costs/Ag Oz $ 12.89 $ 13.27 $ 13.97 $ 12.13 $ 11.05

Table 12:
Results of Operations by Mine – Kensington – (Unaudited)
———————————————————————————-

in millions
of US$ 2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012
———— ———— ———— ———— ———–
Sales of
metal $ 30.9 $ 39.3 $ 43.0 $ 36.5 $ 21.1
Production
costs $ 30.2 $ 23.6 $ 27.0 $ 26.9 $ 16.1
Operating
income $ (13.3) $ 1.6 $ 0.9 $ (3.5) $ (5.0)
Cash flow
from
operating
activities $ 7.6 $ 11.7 $ 16.5 $ 5.0 $ (12.5)
Capital
expenditures $ 7.4 $ 3.3 $ 7.8 $ 9.0 $ 9.3
Gross profit/ $ (12.6) $ 2.3 $ 2.2 $ (1.9) $ (4.7)
Gross margin (40.7)% 5.9% 5.1% (5.2)% (22.3)%

2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012
———— ———— ———— ———— ———–
Tons mined 135,123 116,747 140,626 113,770 84,632
Tons milled 127,987 129,057 129,622 123,428 97,794
Average gold
grade
(oz/t) 0.18 0.20 0.23 0.21 0.23
Average
recovery
rate 98.2% 96.2% 96.9% 95.9% 94.2%
Gold
production 23,162 25,206 28,718 24,391 21,572
Cash
operating
costs/Ag Oz $ 1,115 $ 1,055 $ 1,065 $ 1,298 $ 1,348

Table 13:
Results of Operations by Mine – Rochester – (Unaudited)
———————————————————————————————

in millions
of US$ 2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012
————– ————– ————– ————– ————–
Sales of
metal $ 34.9 $ 39.5 $ 43.2 $ 36.2 $ 34.2
Production
costs $ 23.1 $ 21.5 $ 22.9 $ 21.0 $ 20.8
Operating
income $ (25.2) $ 15.2 $ 19.2 $ 10.9 $ 9.5
Cash flow
from
operating
activities $ (3.4) $ 5.6 $ 18.2 $ 7.3 $ 10.1
Capital
expenditures $ 6.6 $ 3.3 $ 1.5 $ 4.8 $ 2.9
Gross profit $ 9.5 $ 15.8 $ 18.0 $ 13.2 $ 11.3
Gross margin 27.3% 40.0% 41.7% 36.5% 33.0%

2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012
————– ————– ————– ————– ————–
Tons mined 2,667,639 2,924,472 3,031,428 3,170,129 2,585,914
Average
silver grade
(oz/t) 0.58 0.52 0.51 0.52 0.63
Average gold
grade
(oz/t) 0.003 0.003 0.005 0.004 0.005
Silver
production
(000’s) 844 648 828 819 713
Gold
production 9,404 8,742 12,055 10,599 10,120
Cash
operating
costs/Ag Oz $ 14.75 $ 13.54 $ 2.17 $ 9.58 $ 9.83

Table 14:
Results of Operations by Mine – Endeavor – (Unaudited)
————————————————————————-

in millions
of US$ 2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012
———- ———- ———- ———- ———-
Sales of
metal $ 3.5 $ 3.0 $ 2.8 $ 4.1 $ 5.2
Production
costs $ 1.7 $ 1.3 $ 1.6 $ 2.0 $ 2.6
Operating
income $ 0.6 $ 0.8 $ 0.8 $ 1.3 $ 1.1
Cash flow
from
operating
activities $ 1.2 $ 1.6 $ 1.6 $ 1.5 $ 3.6
Capital
expenditures $ — $ — $ — $ — $ —
Gross profit $ 0.6 $ 0.8 $ 0.8 $ 1.3 $ 1.1
Gross margin 17.1% 26.7% 28.6% 31.7% 21.2%

2Q 2013 1Q 2013 4Q 2012 3Q 2012 2Q 2012
———- ———- ———- ———- ———-
Silver
Production
(000’s) 221 150 105 140 240
Cash
operating
costs/Ag Oz $10.62 $17.30 $19.92 $15.97 $17.50

Table 15:
Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs
Three months ended June 30, 2013
————————————————————————————————————-

(In thousands
except ounces
and per ounce San
costs) Palmarejo Bartolomé Kensington Rochester Martha Endeavor Total
———– ————— ———— ———– ——– ———- ————–
Total cash
operating
cost
(Non-U.S.
GAAP) $ 6,639 $ 19,636 $ 25,819 $ 12,450 $ (16) $ 2,350 $ 66,878
Royalties — 1,383 — — — — 1,383
Production
taxes — — — 538 — — 538
———– ————— ———– ———- ——- ——— ———–
Total cash
costs
(Non-U.S.
GAAP) $ 6,639 $ 21,019 $ 25,819 $ 12,988 $ (16) $ 2,350 $ 68,799
======= ============== ======= ====== === ===== =======
Add/Subtract:
Third party
smelting
costs — — (2,449) — 16 (831) (3,264)
By-product
credit 39,828 — — 13,391 — — 53,219
Other
adjustments 7 256 — — — — 263
Change in
inventory 8,735 11,541 6,784 (3,325) — 164 23,899
Depreciation,
depletion and

 amortization        35,543            4,941       13,261        2,325        —       1,220        57,290

                ———–  —————  ———–   ———-   ——-   ———   ———–

Production

 costs

 applicable to

 sales,

 including

 depreciation,

 depletion and

 amortization

 (U.S. GAAP)     $   90,752  $        37,757   $   43,415    $  25,379    $   —    $  2,903    $  200,206

                    =======   ==============      =======       ======       ===       =====       =======

Production of

 silver

 (ounces)         2,044,967        1,523,262           —      843,845        —     221,268     4,633,342

Cash operating

 cost per

 silver ounce    $     3.25  $         12.89   $       —    $   14.75    $   —    $  10.62    $     8.86

Cash costs per

 silver ounce    $     3.25  $         13.80   $       —    $   15.39    $   —    $  10.62    $     9.28

Production of

 gold

 (ounces)                —               —       23,162           —        —          —        23,162

Cash operating

 cost per gold

 ounce           $       —  $            —   $    1,115    $      —    $   —    $     —    $    1,115

Cash cost per

 gold ounce      $       —  $            —   $    1,115    $      —    $   —    $     —    $    1,115 
 Table 16:

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs

Three months ended June 30, 2012

—————————————————————————————————————- 
(In thousands

except ounces

and per ounce San

costs) Palmarejo Bartolomé Kensington Rochester Martha Endeavor Total

———— ————— ———— ———– ———- ———- ————–

Total cash

operating

cost

(Non-U.S.

GAAP) $ (2,009) $ 16,249 $ 29,083 $ 7,008 $ 5,942 $ 4,204 $ 60,477

Royalties — 1,457 — 510 124 — 2,091

Production

taxes — — — 641 — — 641

———– ————— ———– ———- ——— ——— ———–

Total cash

costs

(Non-U.S.

GAAP) $ (2,009) $ 17,706 $ 29,083 $ 8,159 $ 6,066 $ 4,204 $ 63,209

======= ============== ======= ====== ===== ===== =======

Add/Subtract:

Third party

smelting

costs — — (2,820) — (1,444) (1,449) (5,713)

By-product

credit 50,363 — — 16,295 157 — 66,815

Other

adjustments 124 117 7 229 26 — 503

Change in

inventory 14,060 4,950 (10,165) (3,931) 2,297 (202) 7,009

Depreciation,

depletion and

amortization 42,741 4,070 9,719 2,060 631 1,592 60,813

———– ————— ———– ———- ——— ——— ———–

Production

costs

applicable to

sales,

including

depreciation,

depletion and

amortization

(U.S. GAAP) $ 105,279 $ 26,843 $ 25,824 $ 22,812 $ 7,733 $ 4,145 $ 192,636

======= ============== ======= ====== ===== ===== =======

Production of

silver

(ounces) 2,365,484 1,470,342 — 712,706 107,895 240,168 4,896,595

Cash operating

cost per

silver ounce $ (0.85) $ 11.05 $ — $ 9.83 $ 55.07 $ 17.50 $ 6.41

Cash costs per

silver ounce $ (0.85) $ 12.04 $ — $ 11.45 $ 56.21 $ 17.50 $ 6.97

Production of

gold

(ounces) — — 21,572 — — — 21,572

Cash operating

cost per gold

ounce $ — $ — $ 1,348 $ — $ — $ — $ 1,348

Cash cost per

gold ounce $ — $ — $ 1,348 $ — $ — $ — $ 1,348 
 Table 17:

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs

Six months ended June 30, 2013

————————————————————————————————————— 
(In thousands

except ounces

and per ounce San

costs) Palmarejo Bartolomé Kensington Rochester Martha Endeavor Total

———— ————— ———— ———— ——– ———- ————–

Total cash

operating

cost

(Non-U.S.

GAAP) $ 10,257 $ 38,101 $ 52,401 $ 21,219 $ 17 $ 4,938 $ 126,933

Royalties — 2,835 — 1,025 — — 3,860

Production

taxes — — — 1,264 — — 1,264

———– ————— ———– ———– ——- ——— ———–

Total cash

costs

(Non-U.S.

GAAP) $ 10,257 $ 40,936 $ 52,401 $ 23,508 $ 17 $ 4,938 $ 132,057

======= ============== ======= ======= === ===== =======

Add/Subtract:

Third party

smelting

costs — — (5,715) — (17) (1,751) (7,483)

By-product

credit 77,092 — — 27,679 — — 104,771

Other

adjustments 611 810 — — — — 1,421

Change in

inventory (6,031) 6,746 7,032 (6,630) — (183) 934

Depreciation,

depletion and

amortization 64,478 9,697 26,647 4,505 — 2,044 107,371

———– ————— ———– ———– ——- ——— ———–

Production

costs

applicable to

sales,

including

depreciation,

depletion and

amortization

(U.S. GAAP) $ 146,407 $ 58,189 $ 80,365 $ 49,062 $ — $ 5,048 $ 339,071

======= ============== ======= ======= === ===== =======

Production of

silver

(ounces) 3,691,365 2,914,361 — 1,491,434 — 371,012 8,468,172

Cash operating

cost per

silver ounce $ 2.78 $ 13.07 $ — $ 14.23 $ — $ 13.31 $ 8.80

Cash costs per

silver ounce $ 2.78 $ 14.05 $ — $ 15.76 $ — $ 13.31 $ 9.41

Production of

gold

(ounces) — — 48,368 — — — 48,368

Cash operating

cost per gold

ounce $ — $ — $ 1,083 $ — $ — $ — $ 1,083

Cash cost per

gold ounce $ — $ — $ 1,083 $ — $ — $ — $ 1,083 
 Table 18:

Reconciliation of Non-U.S. GAAP Cash Costs to U.S. GAAP Production Costs

Six months ended June 30, 2012

—————————————————————————————————————— 
(In thousands

except ounces

and per ounce

costs) Palmarejo San Bartolomé Kensington Rochester Martha Endeavor Total

———— —————— ———— ———— ——– ———- ————–

Total cash

operating

cost

(Non-U.S.

GAAP) $ (7,652) $ 32,502 $ 49,251 $ 17,311 $11,649 $ 8,331 $ 111,392

Royalties — 3,493 — 1,119 206 — 4,818

Production

taxes — — — 653 — — 653

———– ————- — ———– ———– ——- ——— ———–

Total cash

costs

(Non-U.S.

GAAP) $ (7,652) $ 35,995 $ 49,251 $ 19,083 $11,855 $ 8,331 $ 116,863

======= === ======== === ======= ======= ====== ===== =======

Add/Subtract:

Third party

smelting

costs — — (3,903) — (3,418) (2,238) (9,559)

By-product

credit 102,889 — — 25,252 298 — 128,439

Other

adjustments 368 (77) 14 316 83 — 704

Change in

inventory 12,793 463 (12,166) (14,335) 1,977 (803) (12,071)

Depreciation,

depletion and

amortization 80,501 8,289 16,324 3,702 1,151 3,236 113,203

———– ————- — ———– ———– ——- ——— ———–

Production

costs

applicable to

sales,

including

depreciation,

depletion and

amortization

(U.S. GAAP) $ 188,899 $ 44,670 $ 49,520 $ 34,018 $11,946 $ 8,526 $ 337,579
======= === ======== === ======= ======= ====== ===== =======
Production of
silver
(ounces) 4,848,298 3,061,634 — 1,154,043 230,688 488,126 9,782,789
Cash operating
cost per
silver ounce $ (1.58) $ 10.62 $ — $ 15.00 $ 50.50 $ 17.07 $ 6.35
Cash costs per
silver ounce $ (1.58) $ 11.76 $ — $ 16.54 $ 51.39 $ 17.07 $ 6.91
Production of
gold
(ounces) — — 29,016 — — — 29,016
Cash operating
cost per gold
ounce $ — $ — $ 1,697 $ — $ — $ — $ 1,697
Cash cost per
gold ounce $ — $ — $ 1,697 $ — $ — $ — $ 1,697

Table 19: Co-Product Cash Cost Per Ounce for Three and Six months ended
June 30, 2013 – (Unaudited)
————————————————————————

Three months ended Six months ended
June 30, 2013 June 30, 2013
Palmarejo Rochester Palmarejo Rochester
————— ———– ————– ————–
Total cash
operating
costs $ 46,467 $25,841 $ 87,348 $ 48,898
Total cash
costs $ 46,467 $26,379 $ 87,348 $ 51,187

Revenue
Silver 54% 55% 56% 55%
Gold 46% 45% 44% 45%

Ounces
produced
Silver 2,044,967 843,845 3,691,365 1,491,434
Gold 28,191 9,404 51,157 18,146

Total cash
operating
costs per
ounce
Silver $ 12.24 $16.99 $ 13.22 $ 18.06
Gold $ 761 $1,223 $ 753 $ 1,210

Total cash
costs per
ounce
Silver $ 12.24 $17.34 $ 13.22 $ 18.91
Gold $ 761 $1,249 $ 753 $ 1,267

Table 20: Co-Product Cash Cost Per Ounce for Three and Six months ended June
30, 2012 – (Unaudited)
—————————————————————————-

Three months ended Six months ended
June 30, 2012 June 30, 2012
Palmarejo Rochester Palmarejo Rochester
—————- ———– ————— —————
Total cash
operating
costs $ 48,354 $23,303 $ 95,237 $ 42,564
Total cash
costs $ 48,354 $24,454 $ 95,237 $ 44,336

Revenue
Silver 58% 55% 59% 61%
Gold 42% 45% 41% 39%

Ounces
produced
Silver 2,365,484 712,706 4,848,298 1,154,043
Gold 31,258 10,120 62,338 15,412

Total cash
operating
costs per
ounce
Silver $11.89 $17.99 $11.61 $22.40
Gold $647 $1,036 $625 $1,084

Total cash
costs per
ounce
Silver $11.89 $18.87 $11.61 $23.34
Gold $647 $1,087 $625 $1,129

CONTACT: Coeur Mining, Inc.

Bridget Freas, Director, Investor Relations

312-268-5784

www.coeur.com



    SOURCE: Coeur Mining, Inc.

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