Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

The Company’s gold stream agreement with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”) provided for a $22.0 million deposit paid by Franco-Nevada in exchange for the right and obligation, commencing in 2016, to purchase 50% of a portion of Palmarejo gold production at the lesser of $800 or market price per ounce. Because there is no minimum obligation associated with the deposit, it is not considered financing, and each shipment is considered to be a separate performance obligation. The streaming agreement represents a contract liability under ASC 606, which requires the Company to ratably recognize a portion of the deposit as revenue for each gold ounce delivered to Franco-Nevada. The remaining unamortized balance is included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheet. See Note 17 -- Commitments and Contingencies for additional detail.

The following table presents a rollforward of the Franco-Nevada contract liability balance:


	Three Months Ended September 30,				Nine Months Ended September 30,
In thousands	2021		2020		2021		2020
Opening Balance	$	8,775	$	10,389	$	9,376	$	11,061
Revenue Recognized	(307)		(393)		(908)		(1,065)
Closing Balance	$	8,468	$	9,996	$	8,468	$	9,996

In December 2020, the Company received a $15.0 million prepayment (the “December 2020 Prepayment”) for deliveries of gold concentrate from the Kensington mine pursuant to the Amended Sales Contract (as defined in Note 17). In the first half of 2021, the Kensington mine delivered $15.0 million of gold concentrate to the counterparty in satisfaction of this prepayment obligation. The Amended Sales Contract was further amended in July 2021, with an effective date as of June 28, 2021, to include options for Coeur to receive up to two additional prepayments of up to $15.0 million each for deliveries of gold concentrate from the Kensington mine, and Coeur exercised the option to receive the first $15.0 million prepayment in June 2021 (the “June 2021 Prepayment”), of which $7.5 million in gold ounces were delivered in the third quarter of 2021. The Amended Sales Contract represents a contract liability under ASC 606, which requires the Company to recognize ratably a portion of the deposit as revenue for each gold ounce delivered to the customer. The remaining contract liability is included in Accrued liabilities and other on the Consolidated Balance Sheet. See Note 17 -- Commitments and Contingencies for additional detail.

The following table presents a rollforward of the Amended Sales Contract liability balance:


	Three Months Ended September 30,					Nine Months Ended September 30,
In thousands	2021		2020			2021		2020
Opening Balance	$	15,004	$	15,006		$	15,003	$	15,010
Additions	95		108		—	15,096		15,114
Revenue Recognized	(7,500)		(5,200)			(22,500)		(20,210)
Closing Balance	$	7,599	$	9,914		$	7,599	$	9,914