AGNICO EAGLE MINES LTD, 6-K filed on 8/12/2010
Report of Foreign Issuer
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands
Jun. 30, 2010
Dec. 31, 2009
ASSETS
 
 
Current
 
 
Cash and cash equivalents
$ 147,807 
$ 160,280 
Short-term investments
3,139 
3,313 
Restricted cash
1,840 
 
Trade receivables
65,355 
93,571 
Inventories:
 
 
Ore stockpiles
50,052 
41,286 
Concentrates and dore
49,491 
31,579 
Supplies
97,329 
100,885 
Available-for-sale securities (note 7)
150,707 
111,967 
Other current assets
82,419 
61,159 
Fair value of derivative financial instruments (note 10)
3,873 
 
Total current assets
652,012 
604,040 
Other assets
77,652 
33,641 
Future income and mining tax assets
25,869 
27,878 
Property, plant and mine development
3,739,239 
3,581,798 
TOTAL ASSETS
4,494,772 
4,247,357 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
Current:
 
 
Accounts payable and accrued liabilities
153,978 
143,477 
Dividends payable
 
28,199 
Interest payable
9,889 
1,666 
Income taxes payable
19,196 
4,501 
Capital leases
8,125 
11,955 
Fair value of derivative financial instruments (note 10)
1,622 
662 
Total current liabilities
192,810 
190,460 
Long-term debt (note 8)
735,000 
715,000 
Reclamation provision and other liabilities
107,465 
96,255 
Future income and mining tax liabilities (note 9)
509,958 
493,881 
SHAREHOLDERS' EQUITY
 
 
Common shares (note 5)
2,397,106 
2,378,759 
Stock options (note 6)
89,955 
65,771 
Warrants
24,858 
24,858 
Contributed surplus
15,166 
15,166 
Retained earnings
338,850 
216,158 
Accumulated other comprehensive income
83,604 
51,049 
Total shareholders' equity
2,949,539 
2,751,761 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 4,494,772 
$ 4,247,357 
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $)
In Thousands, except Per Share data
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
REVENUES
 
 
 
 
Revenues from mining operations
$ 347,456 
$ 585,039 
$ 133,084 
$ 238,915 
COSTS, EXPENSES AND OTHER INCOME
 
 
 
 
Production
166,573 
284,800 
61,013 
110,731 
Exploration and corporate development
12,955 
20,459 
9,735 
15,984 
Amortization of plant and mine development
44,003 
74,506 
15,470 
27,600 
General and administrative
23,240 
51,670 
13,253 
32,053 
Provincial capital tax
742 
155 
1,473 
2,582 
Interest
15,309 
19,813 
2,335 
3,204 
Gain on derivative financial instruments
(5,705)
(5,156)
 
 
Interest and sundry income (note 10)
(783)
(2,159)
(5,103)
(9,796)
Gain on sale of available-for-sale securities (note 7)
 
(346)
(341)
(535)
Foreign currency translation loss (gain)
(17,427)
(8,526)
16,664 
9,171 
Income before income, mining and federal capital taxes
108,549 
149,823 
18,585 
47,921 
Income and mining tax expense (recovery) (note 9)
8,189 
27,131 
17,358 
(7,647)
Net income for the period
100,360 
122,692 
1,227 
55,568 
Net income per share - basic (in dollars per share)
0.64 
0.78 
0.01 
0.36 
Net income per share - diluted (in dollars per share)
0.63 
0.77 
0.01 
0.35 
Weighted average number of shares outstanding (in thousands)
 
 
 
 
Basic (in shares)
156,899 
156,789 
155,805 
155,498 
Diluted (in shares)
159,920 
159,585 
157,763 
157,432 
Comprehensive income:
 
 
 
 
Net income for the period
100,360 
122,692 
1,227 
55,568 
Other comprehensive income:
 
 
 
 
Unrealized gain on hedging activities
 
 
12,106 
9,258 
Unrealized gain on available-for-sale securities
23,343 
32,971 
14,337 
19,409 
Adjustments for derivative financial instruments maturing during the period
 
 
(1,287)
1,450 
Adjustments for realized gain on available-for-sale securities due to dispositions and write-downs during the period
 
(346)
 
 
Amortization of unrecognized gain on pension liability
(47)
(94)
14 
Tax effect of other comprehensive income items (note 9)
12 
24 
(2,923)
(2,895)
Other comprehensive income for the period
23,308 
32,555 
22,240 
27,236 
Comprehensive income for the period
$ 123,668 
$ 155,247 
$ 23,467 
$ 82,804 
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)
In Thousands
Retained earnings
Accumulated other comprehensive income (loss)
Total
1/1/2009 - 6/30/2009
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
Balance
$ 157,541 
$ (20,608)
 
Net income for the period
55,568 
 
55,568 
Other comprehensive income for the period
 
27,236 
27,236 
Balance
213,109 
6,628 
 
4/1/2009 - 6/30/2009
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
Balance
211,882 
(15,612)
 
Net income for the period
1,227 
 
1,227 
Other comprehensive income for the period
 
22,240 
22,240 
Balance
213,109 
6,628 
 
1/1/2010 - 6/30/2010
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
Balance
216,158 
51,049 
2,751,761 
Net income for the period
122,692 
 
122,692 
Other comprehensive income for the period
 
32,555 
32,555 
Balance
338,850 
83,604 
2,949,539 
4/1/2010 - 6/30/2010
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
Balance
238,490 
60,296 
 
Net income for the period
100,360 
 
100,360 
Other comprehensive income for the period
 
23,308 
23,308 
Balance
$ 338,850 
$ 83,604 
$ 2,949,539 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Operating activities
 
 
 
 
Net income for the period
$ 100,360 
$ 122,692 
$ 1,227 
$ 55,568 
Add (deduct) items not affecting cash:
 
 
 
 
Amortization of plant and mine development
44,003 
74,506 
15,470 
27,600 
Future income and mining taxes
431 
13,526 
17,209 
(7,929)
Gain on sale of available-for-sale securities and derivative financial instruments
(3,716)
(4,175)
(4,400)
(7,326)
Stock-based compensation
11,167 
26,335 
5,585 
17,767 
Foreign currency translation loss (gain)
(17,427)
(8,526)
16,664 
9,171 
Other
4,081 
7,072 
2,004 
83 
Changes in non-cash working capital balances
 
 
 
 
Trade receivables
7,826 
28,216 
(17,314)
(32,511)
Income taxes payable
10,771 
14,695 
2,570 
1,977 
Other taxes recoverable
(8,985)
(10,181)
(3,962)
27,266 
Inventories
(16,068)
(41,610)
(13,928)
(12,005)
Other current assets
(7,918)
(10,604)
(4,534)
(5,842)
Interest payable
8,562 
8,223 
(62)
340 
Accounts payable and accrued liabilities
28,487 
15,896 
9,840 
1,033 
Cash provided by operating activities
161,574 
236,065 
26,369 
75,192 
Investing activities
 
 
 
 
Additions to property, plant and mine development
(117,017)
(229,580)
(155,002)
(310,349)
Decrease (increase) in short-term investments
166 
174 
(516)
(4,543)
Net proceeds on sale of available-for-sale securities and other
916 
1,381 
3,151 
6,393 
Purchases of available-for-sale securities
(183)
(6,290)
(225)
(2,977)
Decrease (increase) in restricted cash
(708)
(1,840)
(3,138)
324 
Cash used in investing activities
(116,826)
(236,155)
(155,730)
(311,152)
Financing activities
 
 
 
 
Dividends paid
 
(26,830)
 
(27,132)
Repayment of capital lease obligations
(8,573)
(10,112)
(6,520)
(6,882)
Proceeds from long-term debt
1,101,000 
1,201,000 
70,000 
285,000 
Repayment of long-term debt
(1,101,000)
(1,181,000)
 
 
Sale-leaseback financing
 
3,005 
10,888 
10,888 
Long-term debt financing costs
(12,488)
(12,488)
(4,572)
(4,572)
Proceeds from common shares issued
10,639 
14,357 
18,451 
47,392 
Cash provided by (used in) financing activities
(10,422)
(12,068)
88,247 
304,694 
Effect of exchange rate changes on cash and cash equivalents
(134)
(315)
2,990 
1,571 
Net increase (decrease) in cash and cash equivalents during the period
34,192 
(12,473)
(38,124)
70,305 
Cash and cash equivalents, beginning of period
113,615 
160,280 
176,811 
68,382 
Cash and cash equivalents, end of period
147,807 
147,807 
138,687 
138,687 
Other operating cash flow information:
 
 
 
 
Interest paid during the period
4,708 
13,430 
1,987 
3,509 
Income, mining and capital taxes paid during the period
 
$ 1,497 
$ 1,112 
$ 2,859 
BASIS OF PRESENTATION
BASIS OF PRESENTATION

1.     BASIS OF PRESENTATION

  • The accompanying unaudited interim consolidated financial statements of Agnico-Eagle Mines Limited ("Agnico-Eagle" or the "Company") have been prepared in accordance with United States generally accepted accounting principles ("GAAP") in US dollars. They do not include all of the disclosures required by GAAP for annual financial statements. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the fiscal 2009 annual consolidated financial statements, including the accounting policies and notes thereto, included in the Annual Report and Annual Information Form/Form 20-F for the year ended December 31, 2009. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments, which consist only of normal and recurring adjustments necessary to present fairly the financial position as at June 30, 2010 and the results of operations and cash flows for the three and six months ended June 30, 2010 and 2009.

    Operating results for the three months and six ended June 30, 2010 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2010.

USE OF ESTIMATES
USE OF ESTIMATES

2.     USE OF ESTIMATES

  • The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that the estimates used in the preparation of the interim consolidated financial statements are reasonable and prudent; however, actual results could differ from these estimates.

ACCOUNTING POLICIES
ACCOUNTING POLICIES

3.     ACCOUNTING POLICIES

  • These interim consolidated financial statements follow the same accounting policies and methods of their application as the December 31, 2009 audited annual consolidated financial statements except for the changes discussed below.

    Recently Adopted Accounting Pronouncements

    Variable Interest Entities

    In June 2009, the FASB issued an amendment to its guidance for consolidation accounting to require an entity to perform a qualitative analysis to determine whether the enterprise's variable interest gives it a controlling financial interest in a variable interest entity ("VIE"). The updated guidance also requires ongoing reassessments of the primary beneficiary of a VIE. Based on the Company's assessment, these changes do not have an impact on the accounting for our existing VIE (the Company's restricted share unit plan for certain employees).

    Fair Value Accounting

    In January 2010, the FASB guidance for fair value measurements and disclosures was updated to require additional disclosures. The updated guidance was effective for the Company's fiscal year beginning January 1, 2010, with the exception of the level 3 disaggregation which is effective for the Company's fiscal year beginning January 2, 2011. Based on the Company's assessment, these changes do not have an impact on the Company's required disclosures.

FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT

4.     FAIR VALUE MEASUREMENT

  • Accounting Standards Codification ("ASC") 820 — Fair Value Measurement and Disclosure (Prior authoritative literature: FASB Statement No. 157, "Fair Value Measurements") defines fair value, establishes a framework for measuring fair value under GAAP, and requires expanded disclosures about fair value measurements. The three levels of the fair value hierarchy under the Fair Value Measurements and Disclosure Topic of the FASB Accounting Standards Codification are:

    • Level 1 — Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

      Level 2 — Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

      Level 3 — Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

    Fair value is the value at which a financial instrument could be closed out or sold in a transaction with a willing and knowledgeable counterparty over a period of time consistent with the Company's investment strategy. Fair value is based on quoted market prices, where available. If market quotes are not available, fair value is based on internally developed models that use market-based or independent information as inputs. These models could produce a fair value that may not be reflective of future fair value.

    The following table sets forth the Company's financial assets and liabilities measured at fair value within the fair value hierarchy.

   
  Total   Level 1   Level 2   Level 3  
 

Financial assets:

                         
 

Cash equivalents and short-term investments(1)

  $ 7,789   $   $ 7,789   $  
 

Available-for-sale securities(2)(3)

    150,707     139,557     11,150      
 

Trade receivables(4)

    65,355         65,355      
 

Derivative assets(3)

    3,873         3,873      
                     
 

 

  $ 227,724   $ 139,557   $ 88,167   $  
                     
 

Financial liabilities:

                         
 

Derivative liabilities(3)

  $ 1,622   $   $ 1,622   $  
                     

(1)
Fair value approximates the carrying amounts due to the short-term nature.

(2)
Recorded at fair value using quoted market prices.

(3)
Recorded at fair value based on broker-dealer quotations.

(4)
Trade receivables from provisional invoices for concentrate sales are included within Level 2 as they are valued using quoted forward rates derived from observable market data based on the month of expected settlement.
  • Both the Company's cash equivalents and short-term investments are classified within Level 2 of the fair value hierarchy because they are valued using interest rates observable at commonly quoted intervals. Cash equivalents are market securities with remaining maturities of three months or less at the date of purchase. The short-term investments are market securities with remaining maturities of over three months at the date of purchase.

    The Company's available-for-sale equity securities are recorded at fair value using quoted market prices or broker-dealer quotations. The Company's available-for-sale equity securities that are valued using quoted market prices in active markets are classified as Level 1 of the fair value hierarchy. The Company's available-for-sale securities classified as Level 2 of the fair value hierarchy consist of equity warrants, which are recorded at fair value based broker-dealer quotations.

    In the event that a decline in the fair value of an investment occurs and the decline in value is considered to be other-than-temporary, an impairment charge is recorded in the consolidated statement of income and a new cost basis for the investment is established. The Company assesses whether a decline in value is considered to be other-than-temporary by considering available evidence, including changes in general market conditions, specific industry and individual company data, the length of time and the extent to which the fair value has been less than cost, the financial condition and the near-term prospects of the individual investment. New evidence could become available in future periods which would affect this assessment and thus could result in material impairment charges with respect to those investments for which the cost basis exceeds its fair value.

SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY

5.     SHAREHOLDERS' EQUITY

  • During the three months ended March 31, 2009, the Company implemented a restricted share unit plan for certain employees. A deferred compensation balance was recorded for the total grant-date value on the date of the grant. The deferred compensation balance was recorded as a reduction of shareholders' equity and is being amortized as compensation expense (or capitalized to construction in progress) over the applicable vesting period.

    During the three months ended March 31, 2010, the Company funded the plan by transferring $4.0 million (2009 — $3.0 million) to an employee benefit trust (the "Trust") that then purchased shares of the Company in the open market. For accounting purposes, the Trust is treated as a variable interest entity and consolidated in the accounts of the Company. On consolidation, the dividends paid on the shares held by the Trust were eliminated. The shares purchased and held by the Trust are treated as not being outstanding for the basic earnings per share ("EPS") calculations. They are amortized back into basic EPS over the vesting period. All of the shares held by the Trust were included in the diluted EPS calculations.

    For the three and six months ended June 30, 2010 and 2009, the Company's warrants were dilutive and were included in the calculation of diluted net income per share.

    The following table presents the maximum number of common shares that would be outstanding if all instruments outstanding at June 30, 2010 were exercised:

 

Common shares outstanding at June 30, 2010

    157,089,726  
 

Employees' stock options

    8,164,597  
 

Warrants

    8,600,000  
         
 

 

    173,854,323  
         
  • During the six months ended June 30, 2010, 2,795,080 (2009 — 2,271,000) options were granted with an exercise price of C$57.05 (2009 — C$62.63), 285,373 (2009 — 718,000) employee stock options were exercised for cash of $9.5 million (2009 — $18.9 million), and 53,050 (2009 — 70,000) options were cancelled with a weighted average exercise price of C$55.70 (2009 — C$56.50).

    During the three months ended June 30, 2010, 40,000 (2009 — 30,000) options were granted with an exercise price of C$63.70 (2009 — C$52.37), 226,048 (2009 — 115,700) employee stock options were exercised for cash of $8.2 million (2009 — $3.9 million), and 42,500 (2009 — nil) options were cancelled with a weighted average exercise price of C$57.14 (2009 — nil).

    The following table illustrates the changes in capital stock for the six months ended June 30, 2010:

   
  Shares   Amount  
 

Common shares, beginning of period

    156,655,056   $ 2,380,309  
 

Shares issued under Employee Stock Option Plan

    285,373     12,027  
 

Shares issued under Incentive Share Purchase Plan

    124,054     7,221  
 

Shares issued under Dividend Reinvestment Plan

    25,243     1,408  
             
 

Common shares, end of period

    157,089,726   $ 2,400,965  
 

Restricted share unit plan

    (58,369 )   (3,859 )
             
 

Total capital stock, end of period

    157,031,357   $ 2,397,106  
             
  • The following table provides the reconciliation for the weighted average number of common shares in the calculation of basic and diluted income per share:

   
  Three months ended
June 30,
  Six months ended
June 30,
 
   
  2010   2009   2010   2009  
 

Net income

  $ 100,360   $ 1,227   $ 122,692   $ 55,568  
 

Weighted average number of common shares outstanding — basic

   
156,899
   
155,805
   
156,789
   
155,498
 
   

Add:  Dilutive impact of employee stock options

    1,049     1,108     1,049     1,108  
   

           Dilutive impact of warrants

    1,915     804     1,690     780  
   

           Dilutive impact of treasury shares related to restricted share unit plan

    57     46     57     46  
                     
 

Weighted average number of common shares outstanding — diluted

    159,920     157,763     159,585     157,432  
                     
 

Net income per share basic

  $ 0.64   $ 0.01   $ 0.78   $ 0.36  
                     
 

Net income per share diluted

  $ 0.63   $ 0.01   $ 0.77   $ 0.35  
                     

  • The calculation of diluted income per share has been computed using the treasury stock method.

STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

6.     STOCK-BASED COMPENSATION

  • The following summary sets out the activity with respect to the Company's outstanding stock options:

   
  Six months ended
June 30, 2010
 
   
  # of Options   Weighted average
exercise price
(C$)
 
 

Outstanding, beginning of period

    5,707,940   $ 53.85  
 

Granted

    2,795,080   $ 57.05  
 

Exercised

    (285,373 ) $ 34.77  
 

Cancelled

    (53,050 ) $ 55.70  
               
 

Outstanding, end of period

    8,164,597   $ 55.60  
               
 

Options exercisable at end of period

    4,342,150   $ 53.23  
               
  • For the six months ended June 30, 2010 and 2009, the Company estimated the fair value of options under the Black-Scholes option pricing model using the following weighted average assumptions:

   
  2010   2009  
 

Risk-free interest rate

    1.87%     1.26%  
 

Expected life of options (in years)

    2.5     2.5  
 

Expected volatility of the Company's share price

    44.3%     64.1%  
 

Expected dividend yield

    0.43%     0.42%  
AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES

7.     AVAILABLE-FOR-SALE SECURITIES

  • During the three months ended June 30, 2010, the Company received proceeds of nil (2009 — $0.8 million) from the sale of certain available-for-sale securities and recognized a gain before taxes of nil (2009 — $0.3 million).

    During the six months ended June 30, 2010, the Company received proceeds of $0.5 million (2009 — $1.3 million) from the sale of certain available-for-sale securities and recognized a gain before taxes of $0.4 million (2009 — $0.5 million).

    The cost of an available-for-sale security was determined based on the average cost. Available-for-sale securities are carried at fair value and comprise the following:

   
  As at
June 30, 2010
  As at
December 31, 2009
 
 

Available-for-sale securities in an unrealized gain position

             
 

Cost

  $ 50,239   $ 34,599  
 

Unrealized gains in other comprehensive income

    100,468     67,508  
             
 

Estimated fair value

  $ 150,707   $ 102,107  
             
 

Available-for-sale securities in an unrealized loss position

             
 

Cost

  $   $ 9,871  
 

Unrealized losses in other comprehensive income

        (11 )
             
 

Estimated fair value

  $   $ 9,860  
             
 

Total estimated fair value of available-for-sale securities

  $   $ 111,967  
             

  • In addition, the Company holds a position in Goldcorp warrants that have an exercise price of C$34.76 and expire in June 2011.

LONG-TERM DEBT
LONG-TERM DEBT

8.     LONG-TERM DEBT

  • On April 7, 2010, the Company closed a private placement of an aggregate of $600 million of guaranteed senior unsecured notes due 2017, 2020 and 2022 (the "Notes") with a weighted average maturity of 9.84 years and weighted average yield of 6.59%. Net proceeds from the offering of the Notes were used to repay amounts owed under the Company's credit facilities.

    In addition, on June 22, 2010, the Company amended and restated its credit facilities. The Company's $300 million and $600 million credit facilities were amended to become a single credit facility. The total amount available was increased from $900 million to $1.2 billion and the maturity date was extended to June 22, 2014.

    During the three months ended June 30, 2010, the Company repaid $600 million, net, to the credit facilities (2009 — $(70) million). At June 30, 2010, the credit facilities were drawn down by a total of $135.0 million (December 31, 2009 — $715.0 million).

    Total long-term debt interest costs incurred during the three and six months periods ended June 30, 2010 was $15.3 million (2009 — $2.3 million) and $19.8 million (2009 — $3.2 million) respectively. Total interest costs capitalized to property, plant and mine development for the three and six months periods ended June 30, 2010 was nil (2009 — $1.7 million) and $4.6 million (2009 — $2.8 million) respectively.

INCOME TAXES
INCOME TAXES

9.     INCOME TAXES

  • On December 31, 2008, the Company executed a Canadian federal tax election to commence using the US dollar as its functional currency for federal Canadian income tax purposes. As the equivalent tax legislation for the Province of Quebec was enacted in the second quarter of 2010, the Company recognized the deferred tax benefit of $21.8 million relating to income taxes within the Province of Quebec.

FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS

10.   FINANCIAL INSTRUMENTS

  • In the first quarter of 2010, to mitigate the risks associated with fluctuating zinc prices, the Company entered into a zero-cost collar to hedge the price of zinc associated with the LaRonde Mine's 2010 production. The purchase of zinc put options has been financed through selling zinc call options at a higher level such that the net premium payable to the counterparty by the Company is nil.

    A total of 15,000 metric tonnes of zinc call options were written at a strike price of $2,500 per metric tonne with 1,500 metric tonnes expiring each month beginning March 31, 2010. A total of 15,000 metric tonnes of zinc put options were purchased at a strike price of $2,200 per metric tonne with 1,500 metric tonnes expiring each month beginning March 31, 2010. While setting a minimum price, the zero-cost collar strategy also limits participation to zinc prices above $2,500 per metric tonne. These contracts did not qualify for hedge accounting under ASC 815 — Derivatives and Hedging. Gains or losses, along with mark-to-market adjustments are recognized in the gain on derivative financial instruments component of the consolidated statements of income. During the three months ended June 30, 2010, the Company recognized a realized gain of $1.3 million. The first quarter options expired out of the money. As at June 30, 2010, the Company had an unrealized mark-to-market gain of $3.9 million.

    During the three months ended June 30, 2010, the Company wrote covered call options on the warrants of Goldcorp Inc. ("Goldcorp"). The Company sold these call options to reduce its price exposure to the Goldcorp warrants it acquired in connection with Goldcorp's acquisition of Gold Eagle Mines Ltd. As at June 30, 2010, these options were unmatured with a premium of $0.9 million and a Black-Scholes calculated mark-to-market loss of $0.7 million.

    Premiums received on the sale of covered call options are recorded as a liability in the fair value of derivative financial instruments component of the consolidated balance sheets until they mature or the position is closed. The premiums received are expected to be recognized through the interest and sundry income component of the consolidated statements of income in the third quarter of 2010. Gains or losses as a result of mark-to-market valuations are taken into income in the period incurred. Cash provided by operating activities in the consolidated statements of cash flows are adjusted for gains realized on the consolidated statements of income through the gain on sale of securities component. Premiums received are a component of proceeds on sale of available-for-sale securities and other within the cash used in investing activities section of the consolidated statements of cash flows.

    There were no metal derivative positions during the three or six months ended June 30, 2009.

COMMITMENTS, CONTINGENCIES, AND GUARANTEES
COMMITMENTS, CONTINGENCIES, AND GUARANTEES

11.   COMMITMENTS, CONTINGENCIES, AND GUARANTEES

  • As part of its ongoing business and operations, the Company has been required to provide assurance in the form of letters of credit for environmental and site restoration costs, custom credits, government grants and other general corporate purposes. As at June 30, 2010, the total amount of these guarantees was $101.4 million.

SEGMENTED INFORMATION
SEGMENTED INFORMATION

12.   SEGMENTED INFORMATION

  • Agnico-Eagle predominantly operates in a single industry, namely exploration for and production of gold. Based on the internal reporting structure and the nature of the Company's activities, the Company identifies its reportable segments as those consolidated mining operations or functional groups that represent more than 10% of the combined revenue, profit or loss or total assets of all reported operating segments. Consolidated mining operations or functional groups not meeting this threshold are aggregated at the applicable geographic region for segment reporting purposes. This structure reflects how the Company manages its business and how it classifies its operations for planning and measuring performance:

  Canada:   LaRonde Mine, Lapa Mine, Goldex Mine, Meadowbank Mine, and the Regional Office
  Europe:   Kittila Mine
  Latin America:   Pinos Altos Mine
  Exploration:   USA Exploration office, Europe Exploration office, Canada Exploration office, and the Latin America Exploration office
  • Specific Corporate Head Office income and expense items are noted separately below.

    On May 1, 2009, both the Lapa Mine and Kittila Mine achieved commercial production. The Pinos Altos Mine achieved commercial production on November 1, 2009. The Meadowbank Mine achieved commercial production March 1, 2010.

 
Three Months Ended
June 30, 2010
  Revenues from
Mining
Operations
  Production
Costs
  Amortization   Exploration &
Corporate
Development
  Foreign Currency
Translation Loss
(Gain)
  Segment
Income
(Loss)
 
 

Canada

  $ 271,568   $ 130,228   $ 33,088   $   $ (13,836 ) $ 122,088  
 

Europe

    34,725     17,937     6,176         (4,025 )   14,637  
 

Latin America

    41,163     18,408     4,739         434     17,582  
 

Exploration

                12,955         (12,955 )
                             
 

 

  $ 347,456   $ 166,573   $ 44,003   $ 12,955   $ (17,427 ) $ 141,352  
                             
 

Segment income

  $ 141,352  
 

Corporate and Other

                                     
   

Interest and sundry income

    783  
   

Gain on sale of available-for-sale securities

     
   

Gain on derivative financial instruments

    5,705  
   

General and administrative

    (23,240 )
   

Provincial capital tax

    (742 )
   

Interest expense

    (15,309 )
                                       
 

Income before income, mining and federal capital taxes

  $ 108,549  
                                       

 

 
Three Months Ended
June 30, 2009
  Revenues from
Mining
Operations
  Production
Costs
  Amortization   Exploration &
Corporate
Development
  Foreign Currency
Translation Loss
(Gain)
  Segment
Income
(Loss)
 
 

Canada

  $ 126,749   $ 57,823   $ 13,424   $ 3,384   $ 15,935   $ 36,183  
 

Europe

    6,335     3,190     2,046     1,413     1,715     (2,029 )
 

Latin America

                2,476     (41 )   (2,435 )
 

Exploration

                2,462     (945 )   (1,517 )
                             
 

 

  $ 133,084   $ 61,013   $ 15,470   $ 9,735   $ 16,664   $ 30,202  
                             
 

Segment income

  $ 30,202  
 

Corporate and Other

                                     
   

Interest and sundry income

    5,103  
   

General and administrative

    (13,253 )
   

Gain on sale of available-for-sale securities

    341  
   

Provincial capital tax

    (1,473 )
   

Interest expense

    (2,335 )
                                       
 

Income before income, mining and federal capital taxes

  $ 18,585  
                                       

 

 
Six Months Ended
June 30, 2010
  Revenues from
Mining
Operations
  Production
Costs
  Amortization   Exploration &
Corporate
Development
  Foreign Currency
Translation Loss
(Gain)
  Segment
Income
(Loss)
 
 

Canada

  $ 448,183   $ 211,588   $ 53,449   $   $ (3,677 ) $ 186,823  
 

Europe

    69,213     40,955     13,290         (4,687 )   19,655  
 

Latin America

    67,643     32,257     7,767         (162 )   27,781  
 

Exploration

                20,459         (20,459 )
                             
 

 

  $ 585,039   $ 284,800   $ 74,506   $ 20,459   $ (8,526 ) $ 213,800  
                             
 

Segment income

  $ 213,800  
 

Corporate and Other

                                     
   

Interest and sundry income

    2,159  
   

Gain on sale of available-for-sale securities

    346  
   

Gain on derivative financial instruments

    5,156  
   

General and administrative

    (51,670 )
   

Provincial capital tax

    (155 )
   

Interest expense

    (19,813 )
                                       
 

Income before income, mining and federal capital taxes

  $ 149,823  
                                       

 

 
Six Months Ended
June 30, 2009
  Revenues from
Mining
Operations
  Production
Costs
  Amortization   Exploration &
Corporate
Development
  Foreign Currency
Translation Loss
(Gain)
  Segment
Income
(Loss)
 
 

Canada

  $ 232,580   $ 107,541   $ 25,554   $ 4,869   $ 9,381   $ 85,235  
 

Europe

    6,335     3,190     2,046     3,452     302     (2,655 )
 

Latin America

                4,430     (34 )   (4,396 )
 

Exploration

                3,233     (478 )   (2,755 )
                             
 

 

  $ 238,915   $ 110,731   $ 27,600   $ 15,984   $ 9,171   $ 75,429  
                             
 

Segment income

  $ 75,429  
 

Corporate and Other

                                     
   

Interest and sundry income

    9,796  
   

Gain on sale of available-for-sale securities

    535  
   

General and administrative

    (32,053 )
   

Provincial capital tax

    (2,582 )
   

Interest expense

    (3,204 )
                                       
 

Income before income, mining and federal capital taxes

  $ 47,921  
                                       

 

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

13.   SUBSEQUENT EVENTS

  • Subsequent to the second quarter of 2010, the Company and Meliadine Holdings Inc. (formerly Comaplex Minerals Corp.) ("Meliadine") jointly announced the completion of the acquisition of Meliadine by Agnico-Eagle. Agnico-Eagle acquired all of the shares of Meliadine (the "Meliadine Shares") that it did not already own pursuant to a plan of arrangement under the Business Corporations Act (Alberta). Pursuant to the terms of the arrangement, Agnico-Eagle issued a total of 10.2 million shares to the shareholders of Meliadine other than Agnico-Eagle.

    Additionally, each Meliadine shareholder other than Agnico-Eagle and Perfora Investments S.a.r.l. ("Perfora") received one common share of Geomark Exploration Ltd. ("Geomark") for each Meliadine Share held prior to the acquisition of Meliadine by Agnico-Eagle. Pursuant to the arrangement, Meliadine transferred to Geomark all assets and related liabilities other than those relating to the Meliadine gold exploration properties and related assets in Nunavut, Canada. The Geomark assets include all of Meliadine's net working capital, the non-Meliadine mineral properties, all oil and gas properties and investments.

FAIR VALUE MEASUREMENT (Tables)
Schedule of assets and liabilities that are measured at fair value on a recurring basis
   
  Total   Level 1   Level 2   Level 3  
 

Financial assets:

                         
 

Cash equivalents and short-term investments(1)

  $ 7,789   $   $ 7,789   $  
 

Available-for-sale securities(2)(3)

    150,707     139,557     11,150      
 

Trade receivables(4)

    65,355         65,355      
 

Derivative assets(3)

    3,873         3,873      
                     
 

 

  $ 227,724   $ 139,557   $ 88,167   $  
                     
 

Financial liabilities:

                         
 

Derivative liabilities(3)

  $ 1,622   $   $ 1,622   $  
                     

(1)
Fair value approximates the carrying amounts due to the short-term nature.

(2)
Recorded at fair value using quoted market prices.

(3)
Recorded at fair value based on broker-dealer quotations.

(4)
Trade receivables from provisional invoices for concentrate sales are included within Level 2 as they are valued using quoted forward rates derived from observable market data based on the month of expected settlement.
SHAREHOLDERS' EQUITY (Tables)
6 Months Ended
Jun. 30, 2010
SHAREHOLDERS' EQUITY.
 
Schedule of maximum number of common shares that would be outstanding if all instruments outstanding were exercised
Schedule of changes in capital stock
Schedule of Reconciliation for Weighted Average number of Common Shares in calculation of Basic and Diluted Income Per Share
 

Common shares outstanding at June 30, 2010

    157,089,726  
 

Employees' stock options

    8,164,597  
 

Warrants

    8,600,000  
         
 

 

    173,854,323  
         
  • The following table illustrates the changes in capital stock for the six months ended June 30, 2010:

   
  Shares   Amount  
 

Common shares, beginning of period

    156,655,056   $ 2,380,309  
 

Shares issued under Employee Stock Option Plan

    285,373     12,027  
 

Shares issued under Incentive Share Purchase Plan

    124,054     7,221  
 

Shares issued under Dividend Reinvestment Plan

    25,243     1,408  
             
 

Common shares, end of period

    157,089,726   $ 2,400,965  
 

Restricted share unit plan

    (58,369 )   (3,859 )
             
 

Total capital stock, end of period

    157,031,357   $ 2,397,106  
             
   
  Three months ended
June 30,
  Six months ended
June 30,
 
   
  2010   2009   2010   2009  
 

Net income

  $ 100,360   $ 1,227   $ 122,692   $ 55,568  
 

Weighted average number of common shares outstanding — basic

   
156,899
   
155,805
   
156,789
   
155,498
 
   

Add:  Dilutive impact of employee stock options

    1,049     1,108     1,049     1,108  
   

           Dilutive impact of warrants

    1,915     804     1,690     780  
   

           Dilutive impact of treasury shares related to restricted share unit plan

    57     46     57     46  
                     
 

Weighted average number of common shares outstanding — diluted

    159,920     157,763     159,585     157,432  
                     
 

Net income per share basic

  $ 0.64   $ 0.01   $ 0.78   $ 0.36  
                     
 

Net income per share diluted

  $ 0.63   $ 0.01   $ 0.77   $ 0.35  
                     

STOCK-BASED COMPENSATION (Tables)
6 Months Ended
Jun. 30, 2010
STOCK-BASED COMPENSATION.
 
Summary of outstanding stock options
Schedule of weighted average assumptions under the Black-Scholes option pricing model

  Six months ended
June 30, 2010
 
   
  # of Options   Weighted average
exercise price
(C$)
 
 

Outstanding, beginning of period

    5,707,940   $ 53.85  
 

Granted

    2,795,080   $ 57.05  
 

Exercised

    (285,373 ) $ 34.77  
 

Cancelled

    (53,050 ) $ 55.70  
               
 

Outstanding, end of period

    8,164,597   $ 55.60  
               
 

Options exercisable at end of period

    4,342,150   $ 53.23  
               
   
  2010   2009  
 

Risk-free interest rate

    1.87%     1.26%  
 

Expected life of options (in years)

    2.5     2.5  
 

Expected volatility of the Company's share price

    44.3%     64.1%  
 

Expected dividend yield

    0.43%     0.42%  
AVAILABLE-FOR-SALE SECURITIES (Tables)
Available-for-sale securities rollforward from cost to fair value
   
  As at
June 30, 2010
  As at
December 31, 2009
 
 

Available-for-sale securities in an unrealized gain position

             
 

Cost

  $ 50,239   $ 34,599  
 

Unrealized gains in other comprehensive income

    100,468     67,508  
             
 

Estimated fair value

  $ 150,707   $ 102,107  
             
 

Available-for-sale securities in an unrealized loss position

             
 

Cost

  $   $ 9,871  
 

Unrealized losses in other comprehensive income

        (11 )
             
 

Estimated fair value

  $   $ 9,860  
             
 

Total estimated fair value of available-for-sale securities

  $   $ 111,967  
             

SEGMENTED INFORMATION (Tables)
Segment reporting information
 
Three Months Ended
June 30, 2010
  Revenues from
Mining
Operations
  Production
Costs
  Amortization   Exploration &
Corporate
Development
  Foreign Currency
Translation Loss
(Gain)
  Segment
Income
(Loss)
 
 

Canada

  $ 271,568   $ 130,228   $ 33,088   $   $ (13,836 ) $ 122,088  
 

Europe

    34,725     17,937     6,176         (4,025 )   14,637  
 

Latin America

    41,163     18,408     4,739         434     17,582  
 

Exploration

                12,955         (12,955 )
                             
 

 

  $ 347,456   $ 166,573   $ 44,003   $ 12,955   $ (17,427 ) $ 141,352  
                             
 

Segment income

  $ 141,352  
 

Corporate and Other

                                     
   

Interest and sundry income

    783  
   

Gain on sale of available-for-sale securities

     
   

Gain on derivative financial instruments

    5,705  
   

General and administrative

    (23,240 )
   

Provincial capital tax

    (742 )
   

Interest expense

    (15,309 )
                                       
 

Income before income, mining and federal capital taxes

  $ 108,549  
                                       

 

 
Three Months Ended
June 30, 2009
  Revenues from
Mining
Operations
  Production
Costs
  Amortization   Exploration &
Corporate
Development
  Foreign Currency
Translation Loss
(Gain)
  Segment
Income
(Loss)
 
 

Canada

  $ 126,749   $ 57,823   $ 13,424   $ 3,384   $ 15,935   $ 36,183  
 

Europe

    6,335     3,190     2,046     1,413     1,715     (2,029 )
 

Latin America

                2,476     (41 )   (2,435 )
 

Exploration

                2,462     (945 )   (1,517 )
                             
 

 

  $ 133,084   $ 61,013   $ 15,470   $ 9,735   $ 16,664   $ 30,202  
                             
 

Segment income

  $ 30,202  
 

Corporate and Other

                                     
   

Interest and sundry income

    5,103  
   

General and administrative

    (13,253 )
   

Gain on sale of available-for-sale securities

    341  
   

Provincial capital tax

    (1,473 )
   

Interest expense

    (2,335 )
                                       
 

Income before income, mining and federal capital taxes

  $ 18,585  
                                       

 

 
Six Months Ended
June 30, 2010
  Revenues from
Mining
Operations
  Production
Costs
  Amortization   Exploration &
Corporate
Development
  Foreign Currency
Translation Loss
(Gain)
  Segment
Income
(Loss)
 
 

Canada

  $ 448,183   $ 211,588   $ 53,449   $   $ (3,677 ) $ 186,823  
 

Europe

    69,213     40,955     13,290         (4,687 )   19,655  
 

Latin America

    67,643     32,257     7,767         (162 )   27,781  
 

Exploration

                20,459         (20,459 )
                             
 

 

  $ 585,039   $ 284,800   $ 74,506   $ 20,459   $ (8,526 ) $ 213,800  
                             
 

Segment income

  $ 213,800  
 

Corporate and Other

                                     
   

Interest and sundry income

    2,159  
   

Gain on sale of available-for-sale securities

    346  
   

Gain on derivative financial instruments

    5,156  
   

General and administrative

    (51,670 )
   

Provincial capital tax

    (155 )
   

Interest expense

    (19,813 )
                                       
 

Income before income, mining and federal capital taxes

  $ 149,823  
                                       

 

 
Six Months Ended
June 30, 2009
  Revenues from
Mining
Operations
  Production
Costs
  Amortization   Exploration &
Corporate
Development
  Foreign Currency
Translation Loss
(Gain)
  Segment
Income
(Loss)
 
 

Canada

  $ 232,580   $ 107,541   $ 25,554   $ 4,869   $ 9,381   $ 85,235  
 

Europe

    6,335     3,190     2,046     3,452     302     (2,655 )
 

Latin America

                4,430     (34 )   (4,396 )
 

Exploration

                3,233     (478 )   (2,755 )
                             
 

 

  $ 238,915   $ 110,731   $ 27,600   $ 15,984   $ 9,171   $ 75,429  
                             
 

Segment income

  $ 75,429  
 

Corporate and Other

                                     
   

Interest and sundry income

    9,796  
   

Gain on sale of available-for-sale securities

    535  
   

General and administrative

    (32,053 )
   

Provincial capital tax

    (2,582 )
   

Interest expense

    (3,204 )
                                       
 

Income before income, mining and federal capital taxes

  $ 47,921  
                                       

 

FAIR VALUE MEASUREMENT (Details) (USD $)
In Thousands
Jun. 30, 2010
Dec. 31, 2009
Available-for-sale securities
$ 150,707 
$ 111,967 
Trade receivables
65,355 
 
Derivative assets
3,873 
 
Derivative liabilities
1,622 
 
Total
 
 
Cash equivalents and short-term investments
7,789 
 
Available-for-sale securities
150,707 
 
Trade receivables
65,355 
 
Derivative assets
3,873 
 
Total financial assets
227,724 
 
Derivative liabilities
1,622 
 
Level 1
 
 
Available-for-sale securities
139,557 
 
Total financial assets
139,557 
 
Level 2
 
 
Cash equivalents and short-term investments
7,789 
 
Available-for-sale securities
11,150 
 
Trade receivables
65,355 
 
Derivative assets
3,873 
 
Total financial assets
88,167 
 
Derivative liabilities
1,622 
 
Level 3
 
 
Total financial assets
$ 0 
 
SHAREHOLDERS' EQUITY (Details) (USD $)
In Thousands, except Share and Per Share data
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Mar. 31, 2009
SHAREHOLDERS' EQUITY.
 
 
 
 
 
Amount transferred to an employee benefit trust to fund restricted share unit plan
$ 4,000 
 
 
 
$ 3,000 
Common shares outstanding at June 30, 2010 (in shares)
157,089,726 
157,089,726 
 
 
 
Employees' stock options (in shares)
8,164,597 
8,164,597 
 
 
 
Warrants (in shares)
8,600,000 
8,600,000 
 
 
 
Maximum number of shares common shares (in shares)
173,854,323 
173,854,323 
 
 
 
Stock options granted (in shares)
40,000 
2,795,080 
30,000 
2,271,000 
 
Stock options granted - exercise price (in Canadian dollars per share)
63.70 
57.05 
52.37 
62.63 
 
Cash received from exercise of stock options
8,200 
9,500 
3,900 
18,900 
 
Stock options cancelled (in shares)
42,500 
53,050 
70,000 
 
Stock options cancelled - weighted-average exercise price (in Canadian dollars per share)
57.14 
55.70 
0.00 
56.50 
 
Common Stock Shares Outstanding
 
 
 
 
 
Common shares, beginning of period, amount (in U.S. dollars)
 
2,380,309 
 
 
 
Common shares, beginning of period (in shares)
157,089,726 
157,089,726 
 
 
 
Shares issued under Employee Stock Option Plan, amount (in U.S. dollars)
 
12,027 
 
 
 
Shares issued under Employee Stock Option Plan (in shares)
226,048 
285,373 
115,700 
718,000 
 
Shares issued under Incentive Share Purchase Plan, amount (in U.S. dollars)
 
7,221 
 
 
 
Shares issued under Incentive Share Purchase Plan (in shares)
 
124,054 
 
 
 
Shares issued under Dividend Reinvestment Plan, amount (in U.S. dollars)
 
1,408 
 
 
 
Shares issued under Dividend Reinvestment Plan (in shares)
 
25,243 
 
 
 
Common shares, end of period, amount (in U.S. dollars)
2,400,965 
2,400,965 
 
 
 
Common shares, end of period (in shares)
157,089,726 
157,089,726 
 
 
 
Restricted share unit plan, amount (in U.S. dollars)
(3,859)
(3,859)
 
 
 
Restricted share unit plan (in shares)
(58,369)
(58,369)
 
 
 
Total capital stock, end of period, amount (in U.S. dollars)
2,397,106 
2,397,106 
 
 
 
Total capital stock, end of period (in shares)
157,031,357 
157,031,357 
 
 
 
Earnings Per Share, Diluted:
 
 
 
 
 
Net Income
100,360 
122,692 
1,227 
55,568 
 
Weighted Average number of common shares outstanding - basic (in shares)
156,899,000 
156,789,000 
155,805,000 
155,498,000 
 
Add : Dilutive impact of employee stock options (in shares)
1,049,000 
1,049,000 
1,108,000 
1,108,000 
 
Dilutive impact of warrants (in shares)
1,915,000 
1,690,000 
804,000 
780,000 
 
Dilutive impact of treasury shares related to restricted shares unit plan (in shares)
57,000 
57,000 
46,000 
46,000 
 
Weighted Average number of common shares outstanding - Diluted (in shares)
159,920,000 
159,585,000 
157,763,000 
157,432,000 
 
Net income per share - basic (in dollars per share)
0.64 
0.78 
0.01 
0.36 
 
Net income per share - diluted (in dollars per share)
0.63 
0.77 
0.01 
0.35 
 
STOCK-BASED COMPENSATION (Details)
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Number of Options
 
 
 
 
Outstanding, beginning of period (in shares)
 
 
 
 
Granted (in shares)
40,000 
2,795,080 
30,000 
2,271,000 
Shares issued under Employee Stock Option Plan (in shares)
226,048 
285,373 
115,700 
718,000 
Cancelled (in shares)
42,500 
53,050 
70,000 
Outstanding, end of period (in shares)
8,164,597 
8,164,597 
 
 
Weighted average exercise price
 
 
 
 
Granted (in Canadian dollars per share)
63.70 
57.05 
52.37 
62.63 
Stock options
 
 
 
 
Number of Options
 
 
 
 
Outstanding, beginning of period (in shares)
 
5,707,940 
 
 
Granted (in shares)
 
2,795,080 
 
 
Shares issued under Employee Stock Option Plan (in shares)
 
(285,373)
 
 
Cancelled (in shares)
 
(53,050)
 
 
Outstanding, end of period (in shares)
 
8,164,597 
 
 
Options exercisable at end of period (In shares)
 
4,342,150 
 
 
Weighted average exercise price
 
 
 
 
Outstanding, beginning of period (in Canadian dollars per share)
 
53.85 
 
 
Granted (in Canadian dollars per share)
 
57.05 
 
 
Exercised (in Canadian dollars per share)
 
34.77 
 
 
Cancelled (in Canadian dollars per share)
 
55.70 
 
 
Outstanding, end of period (in Canadian dollars per share)
 
55.60 
 
 
Options exercisable at end of period (in Canadian dollars per share)
 
53.23 
 
 
Fair value of options weighted average assumptions:
 
 
 
 
Pricing model used for valuation of options
 
Black-Scholes 
 
Black-Scholes 
Risk-free interest rate (percent in hundredths)
 
1.87% 
 
1.26% 
Expected life of options (in years)
 
2.5 
 
2.5 
Expected volatility of the Company's share price (percent in hundredths)
 
44.3% 
 
64.1% 
Expected dividend yield (percent in hundredths)
 
0.43% 
 
0.42% 
AVAILABLE-FOR-SALE SECURITIES (Details) (USD $)
In Thousands, except Per Share data
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
Year Ended
Dec. 31, 2009
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Proceeds from sale of available-for-sale securities
 
$ 500 
 
$ 800 
$ 1,300 
Gain on sale of available-for-sale securities
 
346 
 
341 
535 
Estimated fair value
150,707 
150,707 
111,967 
 
 
Securities with contractual maturities:
 
 
 
 
 
Goldcorp Inc. warrants which expire in June 2011(in Canadian dollars per share)
34.76 
34.76 
 
 
 
Available-for-Sale Securities Unrealized Gain Position
 
 
 
 
 
Cost
50,239 
 
34,599 
 
 
Unrealized gains (losses) in other comprehensive income
100,468 
 
67,508 
 
 
Estimated fair value
150,707 
 
102,107 
 
 
Available-for-Sale Securities Unrealized Loss Position
 
 
 
 
 
Cost
 
 
9,871 
 
 
Unrealized gains (losses) in other comprehensive income
 
 
(11)
 
 
Estimated fair value
 
 
$ 9,860 
 
 
LONG-TERM DEBT (Details) (USD $)
In Thousands
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
Year Ended
Dec. 31, 2009
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
LONG-TERM DEBT
 
 
 
 
 
Proceeds from private placement of guaranteed senior unsecured notes
$ 600,000 
 
 
 
 
Weighted average maturity term on guaranteed senior unsecured notes (in years)
9.84 
9.84 
 
 
 
Guaranteed senior unsecured notes, weighted average yield (percent in hundredths)
 
6.59% 
 
 
 
Maximum borrowing capacity on one credit facility prior to amendment
300,000 
300,000 
 
 
 
Maximum borrowing capacity on second credit facility prior to amendment
600,000 
600,000 
 
 
 
Total amount available under credit facilities prior to amendment
900,000 
900,000 
 
 
 
Total amount available under credit facilities after amendment
1,200,000 
1,200,000 
 
 
 
Repayment of credit facility
600,000 
 
 
(70,000)
 
Credit facility drawn down
135,000 
135,000 
715,000 
 
 
Long-term debt interest costs
15,309 
19,813 
 
2,335 
3,204 
Interest costs capitalized for property, plant and mine development
 
$ 4,600 
 
$ 1,700 
$ 2,800 
INCOME TAXES(Details) (USD $)
In Millions
6 Months Ended
Jun. 30, 2010
INCOME TAXES
 
Cumulative deferred tax benefit resulting from use of US dollar as functional currency
$ 21.8 
FINANCIAL INSTRUMENTS (Details) (USD $)
In Millions
3 Months Ended
Jun. 30, 2010
Maximum limit for participation to Zinc Prices set by zero-cost collar strategy (Per Metric Tonne)
2,500 
Realized Gain recognized in Consolidated Statement of Income
$ 1.3 
Unrealized mark-to-market gain on derivatives
3.9 
Premium received on unmatured derivative instruments
0.9 
Unrealized mark-to-market loss on derivatives
$ 0.7 
Call Options Written
 
Zinc options (in Metric Tonnes)
15,000 
Strike Price for Option (Per Metric Tonne)
2,500 
Options expiring monthly beginning March 31, 2010 (in metric tonnes)
1,500 
Put Options Purchased
 
Zinc options (in Metric Tonnes)
15,000 
Strike Price for Option (Per Metric Tonne)
2,200 
Options expiring monthly beginning March 31, 2010 (in metric tonnes)
1,500 
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) (USD $)
In Millions
Jun. 30, 2010
COMMITMENTS, CONTINGENCIES, AND GUARANTEES
 
Guarantees provided in the form of letters of credit
$ 101.4 
SEGMENTED INFORMATION (Details) (USD $)
In Thousands
3 Months Ended
Jun. 30, 2010
6 Months Ended
Jun. 30, 2010
3 Months Ended
Jun. 30, 2009
6 Months Ended
Jun. 30, 2009
Revenues from mining operations
$ 347,456 
$ 585,039 
$ 133,084 
$ 238,915 
Production Costs
166,573 
284,800 
61,013 
110,731 
Amortization
44,003 
74,506 
15,470 
27,600 
Exploration and corporate development
12,955 
20,459 
9,735 
15,984 
Foreign currency translation loss (gain)
(17,427)
(8,526)
16,664 
9,171 
Segment Income (Loss)
141,352 
213,800 
30,202 
75,429 
Interest and sundry income
783 
2,159 
5,103 
9,796 
Gain on sale of available-for-sale securities
 
346 
341 
535 
Gain on derivative financial instruments
5,705 
5,156 
 
 
General and administrative
(23,240)
(51,670)
(13,253)
(32,053)
Provincial capital tax
(742)
(155)
(1,473)
(2,582)
Interest expense
(15,309)
(19,813)
(2,335)
(3,204)
Income before income, mining and federal capital taxes
108,549 
149,823 
18,585 
47,921 
Canada
 
 
 
 
Revenues from mining operations
271,568 
448,183 
126,749 
232,580 
Production Costs
130,228 
211,588 
57,823 
107,541 
Amortization
33,088 
53,449 
13,424 
25,554 
Exploration and corporate development
 
 
3,384 
4,869 
Foreign currency translation loss (gain)
(13,836)
(3,677)
15,935 
9,381 
Segment Income (Loss)
122,088 
186,823 
36,183 
85,235 
Europe
 
 
 
 
Revenues from mining operations
34,725 
69,213 
6,335 
6,335 
Production Costs
17,937 
40,955 
3,190 
3,190 
Amortization
6,176 
13,290 
2,046 
2,046 
Exploration and corporate development
 
 
1,413 
3,452 
Foreign currency translation loss (gain)
(4,025)
(4,687)
1,715 
302 
Segment Income (Loss)
14,637 
19,655 
(2,029)
(2,655)
Latin America
 
 
 
 
Revenues from mining operations
41,163 
67,643 
 
 
Production Costs
18,408 
32,257 
 
 
Amortization
4,739 
7,767 
 
 
Exploration and corporate development
 
 
2,476 
4,430 
Foreign currency translation loss (gain)
434 
(162)
(41)
(34)
Segment Income (Loss)
17,582 
27,781 
(2,435)
(4,396)
Exploration
 
 
 
 
Exploration and corporate development
12,955 
20,459 
2,462 
3,233 
Foreign currency translation loss (gain)
 
 
(945)
(478)
Segment Income (Loss)
(12,955)
(20,459)
(1,517)
(2,755)
Corporate and Other
 
 
 
 
Interest and sundry income
783 
2,159 
5,103 
9,796 
Gain on sale of available-for-sale securities
 
346 
341 
535 
Gain on derivative financial instruments
5,705 
5,156 
 
 
General and administrative
(23,240)
(51,670)
(13,253)
(32,053)
Provincial capital tax
(742)
(155)
(1,473)
(2,582)
Interest expense
$ (15,309)
$ (19,813)
$ (2,335)
$ (3,204)
SUBSEQUENT EVENTS (Details)
6 Months Ended
Jun. 30, 2010
Meliadine Holdings Inc. (formerly Comaplex Minerals Corp.)
 
Number of shares issued by Agnico-Eagle to acquire Meliadine
10,200,000 
Document and Entity Information
6 Months Ended
Jun. 30, 2010
Document and Entity Information
 
Entity Registrant Name
AGNICO EAGLE MINES LTD 
Entity Central Index Key
0000002809 
Document Type
6-K 
Document Period End Date
06/30/2010 
Amendment Flag
FALSE 
Current Fiscal Year End Date
12/31 
Document Fiscal Year Focus
2010 
Document Fiscal Period Focus
Q2