In December 2017, the Company and certain of its subsidiaries entered into a definitive agreement (as amended, the “Agreement”) to sell all of the outstanding capital stock of Manquiri, which is the operator of the San Bartolomé mine and processing facility (the “Manquiri Divestiture”). On February 28, 2018, the Manquiri Divestiture was completed, and, in accordance with the Agreement, Manquiri was sold to Ag-Mining Investments, AB, a privately-held Swedish company.

Coeur and its subsidiaries received 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 immediately upon the closing of the Transaction, valued at $7.1 million.


•	Pre-closing value added tax refunds valued at $12.7 million that will be collected or received by Manquiri in the future will be paid to Coeur (net of collection costs).


•	Eighteen-month promissory notes valued at $26.9 million payable to Coeur and certain of its subsidiaries representing Manquiri’s cash and cash equivalents on the date of closing of the Manquiri Divestiture, and providing for repayment beginning in October 2018.


•	The Company recognized a liability of approximately $5.7 million for certain post-closing covenants, guaranties and indemnification obligations on the part of the Company pursuant to the Agreement

The sale of Manquiri resulted in a gain of $1.5 million, which is included in Income (loss) from discontinued operations.

The 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 three and six months ended June 30, 2018 and 2017 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 three and six months ended June 30, 2018 and 2017 are as follows (in thousands):



	Three months ended June 30,					Six months ended June 30,
	2018		2017			2018			2017
Revenue	$	—	$	23,814		$	12,346		$	44,398
COSTS AND EXPENSES
Costs applicable to sales⁽¹⁾	—		23,392			12,269			41,614
Amortization	—		2,212			—			3,623
General and administrative	—		17			41			25
Pre-development, reclamation, and other	—		281			265			1,025
OTHER INCOME (EXPENSE), NET
Interest expense, net of capitalized interest	—		(6		)	(3		)	(12		)
Other, net	—		161			(260		)	501
Pretax profit (loss) on discontinued operations related to major classes of pretax profit (loss)	—		(1,933		)	(492		)	(1,400		)
Pretax gain on the disposal of the discontinued operation	—		—			1,525			—
Total pretax gain or loss on discontinued operations	—		(1,933		)	1,033			(1,400		)
Income and mining tax (expense) benefit	—		973			(483		)	804
Income (loss) from discontinued operations	$	—	$	(960	)	$	550		$	(596	)

(1) Excludes amortization.

Net cash provided by operating activities was $5.2 million for the three months ended June 30, 2017. Net cash used in operating activities from San Bartolomé was $2.7 million for the six months ended June 30, 2018 compared to net cash provided by operating activities of $16.5 million for the six months ended June 30, 2017, respectively. Net cash used in investing activities from San Bartolomé was $0.4 million for the three months ended June 30, 2017. Net cash used in investing activities from San Bartolomé were $28.5 million and $0.8 million for the six months ended June 30, 2018 and 2017, respectively.