ASSETS AND LIABILITIES HELD FOR SALE

On December 22, 2017, the Company and certain of its subsidiaries entered into a definitive agreement (the “Agreement”) to sell all of the outstanding capital stock of Manquiri, which is the owner and operator of the San Bartolomé mine and processing facility (the “Transaction”). The Agreement provides that Manquiri will be sold to Argentum Investments, AB (“Argentum”), a privately-held Swedish company owned by a group of Mexican individuals with extensive mining experience in Latin America. The transaction is expected to close in early 2018, subject to customary closing conditions. Results of operations for the year ended December 31, 2017 include a $3.4 million write-down of assets to expected realizable value. The Company considered the terms of the Agreement to determine the expected realizable value.

Under the Agreement, affiliates of Argentum will acquire Manquiri from Coeur and its subsidiaries for the following consideration:


•	2.0% net smelter returns royalty (the “NSR”) payable to Coeur on all metals processed through the San Bartolomé Mine’s processing facility, commencing on the first anniversary of the closing of the Transaction. Coeur estimates the value of this NSR to be approximately $5.0 million.


•	Approximately $13.0 million of pre-closing value added tax refunds that will be collected or received by Manquiri in the future will be paid to Coeur (net of collection costs).


•	One-year promissory note of approximately $28.0 million payable to Coeur with an aggregate principal amount equal to Manquiri’s cash and cash equivalents (the “Note”).


•	The Agreement includes certain post-closing covenants, guaranties and indemnification obligations on the part of the Company for which the Company is expected to recognize a liability of approximately $6.0 million when the Transaction closes.

In accordance with GAAP, the Company classified Manquiri as held for sale and the associated assets and liabilities are classified separately on the consolidated balance sheets. The major classes of assets and liabilities associated with San Bartolomé as of December 31, 2017 and 2016 are as follows:



	December 31, 2017		December 31, 2016
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	32,931	$	43,870
Receivables	7,295		7,016
Inventory	10,655		12,590
Prepaid expenses and other	13,415		7,966
Property, plant and equipment, net	20,240		—
Mining properties, net	6,885		—
	91,421		71,442

NON-CURRENT ASSETS
Property, plant and equipment, net	—		23,373
Mining properties, net	—		8,165
Receivables	—		17,225
TOTAL ASSETS	$	91,421	$	120,205
LIABILITIES
CURRENT LIABILITIES
Accounts payable	$	10,974	$	8,675
Accrued liabilities and other	5,161		6,382
Reclamation	15,179		413
Other	19,363		—
	50,677		15,470
NON-CURRENT LIABILITIES
Reclamation	—		10,212
Deferred tax liabilities	—		4,987
Other	—		18,558
TOTAL LIABILITIES	$	50,677	$	49,227

The expected sale of Manquiri and San Bartolomé is expected to have a major effect on the Company's results and operations. Accordingly, San Bartolomé’s operations for the years ended December 31, 2017, 2016 and 2015 are classified on the consolidated statements of operations and comprehensive income (loss) as Income (loss) from discontinued operations. The major classes of line items constituting the pretax profit or loss for the years ended December 31, 2017, 2016 and 2015 are as follows:



	Year ended December 31,
	2017			2016			2015
Revenue	$	73,065		$	93,880		$	84,679
Costs applicable to sales⁽¹⁾	74,074			74,166			75,827
Amortization	5,899			6,633			17,798
General and administrative	172			101			198
Exploration	23			—			126
Write-downs	3,390			—			66,712
Pre-development, reclamation, and other	4,664			2,808			1,589
Interest expense, net of capitalized interest	(27		)	(24		)	(725		)
Other, net	1,763			1,777			1,736
Pretax profit or loss of discontinued operations related to major classes of pretax profit (loss)	(13,421		)	11,925			(76,560		)
Pretax gain or loss on the disposal of the discontinued operation	—			—			—
Total pretax gain or loss on discontinued operations	(13,421		)	11,925			(76,560		)
Income and mining tax (expense) benefit	1,177			20,992			(2,812		)
Income (loss) from discontinued operations.	$	(12,244	)	$	32,917		$	(79,372	)

(1) Excludes amortization.

Net cash provided by operating activities from San Bartolomé were $11.3 million, $29.4 million, and $26.1 million for the years ended December 31, 2017, 2016 and 2015, respectively. Net cash used in investing activities, which primarily relate to capital expenditures, from San Bartolomé were $1.4 million, $6.6 million, and $6.2 million for the years ended December 31, 2017, 2016 and 2015.