Coeur Mining (CDE) risk factors, FY2024 10-K

RISKS RELATED TO OUR INDUSTRY

1. 01Our results of operations, cash flows and operating costs are highly dependent upon the market prices of gold and silver and of key input commodities used in our business, which are volatile and beyond our control
2. 02Silver (per ounce) $34.51 October 23, 2024 $22.09 February 14, 2024
3. 03Volatility in metals prices may also impact the price of our outstanding securities
4. 04A significant delay or disruption in sales of concentrates or doré as a result of the unexpected disruption in services provided by smelters, refiners or other third parties could have a material adverse effect on our results of operations
5. 05There are significant hazards associated with mining activities, some of which may not be fully covered by insurance

RISKS RELATED TO OUR OPERATIONS

1. 06Our future growth will depend upon our ability to expand existing mines and develop and start-up new mines, either through exploration at existing properties or by acquisition of other mining companies or properties
2. 07We may be unable to successfully integrate, may not realize the expected benefits of recent or future acquisitions or may face risks associated with divestitures
3. 08than originally anticipated, due primarily to more significant mill availability and maintenance challenges than were anticipated at the time Silvertip was acquired, as well as deteriorating zinc and lead market conditions
4. 09Significant investment risks and operational costs are associated with exploration and development activities. These risks and costs may result in lower economic returns and may adversely affect our business
5. 10The Company may be affected by global supply chain disruptions
6. 11We may be required to write down certain long-lived assets, due to metal prices, operational challenges or other factors. Such write-downs may adversely affect our results of operations and financial condition
7. 12Coeur is an international company and is exposed to political and social risks associated with its foreign operations
8. 13Our operations outside the United States also expose us to economic and operational risks
9. 14Our success depends on developing and maintaining relationships with local communities and other stakeholders
10. 15Our mining assets are subject to geotechnical and hydrological risks, and a related incident could materially and adversely impact our production, profitability and financial condition, as well as the value of our common stock
11. 16Our estimates of future production, costs, expenditures and financial results are imprecise, depend upon subjective factors, may not be realized in actual production and such estimates speak only as of their respective dates
12. 17Our use of derivative contracts to protect against market price volatility exposes us to risk of opportunity loss, mark-to-market fair value adjustments, potential cash collateral calls and exposure to counterparty credit risk
13. 18We are dependent upon information technology and operational technology, which are subject to cybersecurity incidents, disruption, damage, failure and other risks associated with implementation and integration
14. 19We may be expected to continue enhancing our ESG practices to meet evolving and inconsistent standards
15. 20Our operations may be disrupted, and our financial results may be adversely affected by an outbreak of infectious disease or pandemic
16. 21Public health threats and related government restrictions, including potential closure of national borders, may disrupt the supply of raw goods, equipment, supplies and services upon which our operations rely
17. 22Our business depends on good relations with, and the retention and hiring of, personnel
18. 23Continuation of our mining operations is dependent on the availability of sufficient and affordable water supplies
19. 24We may not be able to recognize the benefits of deferred tax assets

RISKS RELATED TO INDEBTEDNESS AND FINANCING

1. 25Our future operating performance may not generate cash flows sufficient to meet debt payment obligations
2. 26The terms of our debt impose restrictions on our operations
3. 27Any downgrade in the credit ratings assigned to us or our debt securities could increase future borrowing costs, adversely affect the availability of new financing and may result in increased collateral requirements under our existing surety bond portfolio

RISKS RELATED TO APPLICABLE LAWS AND REGULATIONS

1. 28Compliance with environmental regulations and litigation based on environmental regulations could require significant expenditures
2. 29The potential exposure may be significant and could have a material adverse effect on our financial condition and results of operations
3. 30We are required to obtain and renew governmental permits in order to conduct operations, a process which is often costly and time-consuming. Our ability to obtain necessary government permits to expand operations or begin new operations may be materially affected by third-party activists
4. 31Our business is subject to anti-bribery laws, a breach or violation of which could lead to civil and criminal fines and penalties, loss of licenses or permits and reputational harm
5. 32We are subject to litigation and may be subject to additional litigation in the future
6. 33Disputes regarding our mining claims, concessions or surface rights to land in the vicinity of our mining projects could adversely impact operations
7. 34the claims, concessions or rights comprising our projects that, if successful, could impair development and operations. A defect could result in us losing all or a portion of our right, title, estate and interest in and to the properties to which the title defect relates
8. 35We are subject to tax laws in the United States and several foreign jurisdictions. Changes in fiscal and tax policies, including new tax legislation and reform to existing policy, may have a significant negative impact on the Company’s effective tax rate

RISKS RELATED TO OUR COMMON STOCK

1. 36We have the ability to issue additional equity securities, including in connection with an acquisition of other companies, including the SilverCrest Transaction, which would lead to dilution of our issued and outstanding common stock and may materially and adversely affect the price of our common stock
2. 37certain Canadian accredited investors for a private placement offering of an aggregate 7.7 million shares of common stock, par value $0.01 per shares, to be issued as “flow-through shares,” as defined in subsection 66(15) of the Income Tax Act (Canada)
3. 38Holders of our common stock may not receive dividends

RISKS RELATED TO THE RECENT ACQUISITION OF SILVERCREST METALS INC

1. 39Coeur and SilverCrest may be the targets of legal claims, securities class actions, derivative lawsuits and other claims and negative publicity related to the SilverCrest Transaction
2. 40Coeur is expected to incur significant transaction costs in connection with the SilverCrest Transaction, which may exceed those anticipated by Coeur
3. 41The combined company may be unable to integrate the businesses of Coeur and SilverCrest successfully or realize the anticipated benefits of the SilverCrest Transaction
4. 42SilverCrest’s public filings are subject to Canadian disclosure standards, which differ from SEC disclosure requirements