AGNICO EAGLE MINES LTD, 6-K filed on 8/9/2013
Report of Foreign Issuer
Document and Entity Information
6 Months Ended
Jun. 30, 2013
Document and Entity Information
 
Entity Registrant Name
AGNICO EAGLE MINES LTD 
Entity Central Index Key
0000002809 
Document Type
6-K 
Document Period End Date
Jun. 30, 2013 
Amendment Flag
false 
Current Fiscal Year End Date
--12-31 
Entity Current Reporting Status
Yes 
Entity Filer Category
Large Accelerated Filer 
Document Fiscal Year Focus
2013 
Document Fiscal Period Focus
Q2 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Current
 
 
Cash and cash equivalents
$ 107,379 
$ 298,068 
Short-term investments
4,878 
8,490 
Restricted cash
24,106 
25,450 
Trade receivables (note 4)
60,001 
67,750 
Inventories:
 
 
Ore stockpiles
69,012 
52,342 
Concentrates and dore bars
59,646 
69,695 
Supplies
192,870 
222,630 
Income taxes recoverable
21,804 
19,313 
Available-for-sale securities (notes 4 and 8)
68,805 
44,719 
Fair value of derivative financial instruments (notes 4 and 10)
7,135 
1,835 
Other current assets
115,242 
92,977 
Total current assets
730,878 
903,269 
Other assets
43,401 
55,838 
Goodwill (note 14)
235,414 
229,279 
Property, plant and mine development (note 5)
4,241,107 
4,067,456 
TOTAL ASSETS
5,250,800 
5,255,842 
Current
 
 
Accounts payable and accrued liabilities
207,539 
185,329 
Reclamation provision (note 13)
11,022 
16,816 
Dividends payable
 
37,905 
Interest payable (note 9)
13,383 
13,602 
Income taxes payable
4,445 
10,061 
Capital lease obligations
10,959 
12,955 
Fair value of derivative financial instruments (notes 4 and 10)
1,968 
 
Total current liabilities
249,316 
276,668 
Long-term debt (note 9)
850,000 
830,000 
Reclamation provision and other liabilities
119,894 
127,735 
Deferred income and mining tax liabilities
614,764 
611,227 
SHAREHOLDERS' EQUITY
 
 
Common shares (note 6): Outstanding - 173,311,379 common shares issued, less 396,685 shares held in trust
3,265,068 
3,241,922 
Stock options (notes 6 and 7)
163,835 
148,032 
Warrants (note 6)
24,858 
24,858 
Contributed surplus
15,665 
15,665 
Retained earnings (deficit)
(31,468)
7,046 
Accumulated other comprehensive loss (note 6)
(21,132)
(27,311)
Total shareholders' equity
3,416,826 
3,410,212 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 5,250,800 
$ 5,255,842 
CONSOLIDATED BALANCE SHEETS (Parenthetical)
Jun. 30, 2013
CONSOLIDATED BALANCE SHEETS
 
Common shares, issued
173,311,379 
Number of shares of common stock held in trust
396,685 
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
REVENUES
 
 
 
 
Revenues from mining operations
$ 336,424 
$ 459,561 
$ 756,846 
$ 932,495 
COSTS, EXPENSES AND OTHER INCOME
 
 
 
 
Production (1)
225,951 1
219,906 1
456,004 1
434,941 1
Exploration and corporate development
11,326 
34,286 
19,897 
57,394 
Amortization of property, plant and mine development (note 5)
70,128 
66,310 
140,199 
130,863 
General and administrative (note 15)
28,385 
32,015 
65,705 
65,943 
Impairment loss on available-for-sale securities (note 8)
17,313 
11,581 
28,308 
11,581 
Provincial capital tax
(1,504)
4,001 
(1,504)
4,001 
Interest expense (note 9)
13,735 
14,220 
27,651 
28,667 
Interest and sundry expense (income)
3,734 
23 
3,946 
(246)
Loss (gain) on derivative financial instruments (notes 4 and 10)
1,936 
4,321 
(1,046)
3,426 
Loss on sale of available-for-sale securities (note 8)
 
6,731 
 
6,731 
Foreign currency translation (gain) loss
(11,120)
(11,009)
(7,462)
4,508 
Income (loss) before income and mining taxes
(23,460)
77,176 
25,148 
184,686 
Income and mining taxes
920 
33,904 
25,669 
62,866 
Net income (loss) for the period
(24,380)
43,272 
(521)
121,820 
Net income (loss) per share - basic (note 6) (in dollars per share)
$ (0.14)
$ 0.25 
$ 0.00 
$ 0.71 
Net income (loss) per share - diluted (note 6) (in dollars per share)
$ (0.14)
$ 0.25 
$ 0.00 
$ 0.71 
Cash dividends declared per common share (in dollars per share)
$ 0.22 
$ 0.20 
$ 0.22 
$ 0.40 
COMPREHENSIVE INCOME (LOSS)
 
 
 
 
Net income (loss) for the period
(24,380)
43,272 
(521)
121,820 
Available-for-sale securities and other investments:
 
 
 
 
Unrealized loss
(20,802)
(22,058)
(20,975)
(37,077)
Reclassification to impairment loss on available-for-sale securities (notes 4 and 8)
17,313 
11,581 
28,308 
11,581 
Reclassification to realized loss on sale of available-for-sale securities (notes 4 and 8)
 
6,731 
 
6,731 
Derivative financial instruments (notes 4 and 10):
 
 
 
 
Unrealized (loss) gain
(1,932)
(5,540)
(1,851)
1,734 
Reclassification to production costs
 
527 
 
17 
Reclassification to interest expense
10 
 
20 
 
Pension benefits:
 
 
 
 
Reclassification to general and administrative expense
131 
1,379 
262 
1,603 
Income tax impact of reclassification items
(37)
(502)
(74)
(427)
Income tax impact of other comprehensive income (loss) items
508 
1,196 
489 
(723)
Other comprehensive income (loss) for the period
(4,809)
(6,686)
6,179 
(16,561)
Comprehensive income (loss) for the period
$ (29,189)
$ 36,586 
$ 5,658 
$ 105,259 
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)
In Thousands, except Share data, unless otherwise specified
Total
Common Shares Outstanding
Stock Options
Warrants
Contributed Surplus
Retained Earnings (Deficit)
Accumulated Other Comprehensive Loss
Non-Controlling Interest
Balance at Dec. 31, 2011
 
$ 3,181,381 
$ 117,694 
$ 24,858 
$ 15,166 
$ (129,021)
$ (7,106)
$ 12,191 
Balance (in shares) at Dec. 31, 2011
 
170,813,736 
 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
 
Shares issued under employee stock option plan (notes 6 and 7)
 
677 
(126)
 
 
 
 
 
Shares issued under employee stock option plan (notes 6 and 7) (in shares)
 
15,250 
 
 
 
 
 
 
Stock options (notes 6 and 7)
 
 
20,311 
 
 
 
 
 
Shares issued under incentive share purchase plan
 
10,590 
 
 
 
 
 
 
Shares issued under incentive share purchase plan (in shares)
 
289,212 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan
 
7,570 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan (in shares)
 
210,378 
 
 
 
 
 
 
Shares issued for purchase of mining property (note 14)
 
2,447 
 
 
499 
 
 
 
Shares issued for purchase of mining property (note 14) (in shares)
 
68,941 
 
 
 
 
 
 
Non-controlling interest eliminated upon acquisition (note 14)
 
 
 
 
 
 
 
(12,191)
Net income (loss) for the period
 
 
 
 
 
121,820 
 
 
Dividends declared 0.22 and $0.40 per share for the period ended June 30, 2013 and 2012, respectively)
 
 
 
 
 
(68,304)
 
 
Other comprehensive income (loss) for the period
(16,561)
 
 
 
 
 
(16,561)
 
Restricted share unit plan (note 6)
 
(8,084)
 
 
 
 
 
 
Restricted share unit plan (note 6) (in shares)
 
(228,112)
 
 
 
 
 
 
Balance at Jun. 30, 2012
 
3,194,581 
137,879 
24,858 
15,665 
(75,505)
(23,667)
 
Balance (in shares) at Jun. 30, 2012
 
171,169,405 
 
 
 
 
 
 
Balance at Dec. 31, 2012
3,410,212 
3,241,922 
148,032 
24,858 
15,665 
7,046 
(27,311)
 
Balance (in shares) at Dec. 31, 2012
 
172,102,870 
 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
 
Shares issued under employee stock option plan (notes 6 and 7)
 
9,765 
(3,292)
 
 
 
 
 
Shares issued under employee stock option plan (notes 6 and 7) (in shares)
 
213,500 
 
 
 
 
 
 
Stock options (notes 6 and 7)
 
 
19,095 
 
 
 
 
 
Shares issued under incentive share purchase plan
 
11,742 
 
 
 
 
 
 
Shares issued under incentive share purchase plan (in shares)
 
370,536 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan
 
14,456 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan (in shares)
 
430,733 
 
 
 
 
 
 
Net income (loss) for the period
 
 
 
 
 
(521)
 
 
Dividends declared 0.22 and $0.40 per share for the period ended June 30, 2013 and 2012, respectively)
 
 
 
 
 
(38,150)
 
 
Other comprehensive income (loss) for the period
6,179 
 
 
 
 
 
6,179 
 
Restricted share unit plan (note 6)
 
(12,817)
 
 
 
157 
 
 
Restricted share unit plan (note 6) (in shares)
 
(202,945)
 
 
 
 
 
 
Balance at Jun. 30, 2013
$ 3,416,826 
$ 3,265,068 
$ 163,835 
$ 24,858 
$ 15,665 
$ (31,468)
$ (21,132)
 
Balance (in shares) at Jun. 30, 2013
 
172,914,694 
 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
 
 
 
 
Dividends declared (in dollars per share)
$ 0.22 
$ 0.20 
$ 0.22 
$ 0.40 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
OPERATING ACTIVITIES
 
 
 
 
Net income (loss) for the period
$ (24,380)
$ 43,272 
$ (521)
$ 121,820 
Add (deduct) items not affecting cash:
 
 
 
 
Amortization of property, plant and mine development (note 5)
70,128 
66,310 
140,199 
130,863 
Deferred income and mining taxes
(562)
15,069 
6,464 
25,389 
Stock-based compensation (note 7)
9,332 
11,296 
25,609 
27,068 
Loss on sale of available-for-sale securities (note 8)
 
6,731 
 
6,731 
Impairment loss on available-for-sale securities (note 8)
17,313 
11,581 
28,308 
11,581 
Foreign currency translation (gain) loss
(11,120)
(11,009)
(7,462)
4,508 
Other
5,877 
4,811 
11,008 
7,610 
Adjustment for settlement of environmental remediation
(2,990)
(6,059)
(5,542)
(12,291)
Changes in non-cash working capital balances:
 
 
 
 
Trade receivables
10,525 
15,000 
7,749 
Income taxes
(4,199)
24,013 
(8,107)
43,882 
Inventories
3,789 
(9,295)
31,781 
2,254 
Other current assets
(15,091)
(8,955)
(20,856)
9,855 
Accounts payable and accrued liabilities
24,283 
41,209 
14,181 
11,357 
Interest payable
(7,607)
(9,892)
(1,441)
(55)
Cash provided by operating activities
75,298 
194,082 
221,370 
390,579 
INVESTING ACTIVITIES
 
 
 
 
Additions to property, plant and mine development (note 5)
(171,773)
(104,368)
(302,407)
(180,363)
Acquisition of Urastar Gold Corporation, net (note 14)
(10,051)
 
(10,051)
 
Acquisition of Grayd Resource Corporation (note 14)
 
 
 
(9,322)
Decrease in short-term investments
2,308 
2,983 
3,612 
3,562 
Net proceeds from sale of available-for-sale securities
 
30,732 
 
30,732 
Purchase of available-for-sale securities and warrants (note 8)
(39,584)
 
(52,259)
(2,003)
Decrease (increase) in restricted cash
818 
2,034 
1,344 
(133)
Cash used in investing activities
(218,282)
(68,619)
(359,761)
(157,527)
FINANCING ACTIVITIES
 
 
 
 
Dividends paid
(31,759)
(30,283)
(61,649)
(60,798)
Repayment of capital lease obligations
(3,509)
(2,744)
(6,062)
(5,856)
Proceeds from long-term debt (note 9)
50,000 
255,000 
90,000 
255,000 
Repayment of long-term debt (note 9)
 
(255,000)
(70,000)
(345,000)
Long-term debt financing costs
 
(327)
 
(327)
Repurchase of common shares for restricted share unit plan (note 6)
 
 
(19,000)
(12,031)
Common shares issued
3,945 
4,096 
15,884 
7,676 
Cash provided by (used in) financing activities
18,677 
(29,258)
(50,827)
(161,336)
Effect of exchange rate changes on cash and cash equivalents
(599)
(1,211)
(1,471)
(693)
Net (decrease) increase in cash and cash equivalents during the period
(124,906)
94,994 
(190,689)
71,023 
Cash and cash equivalents, beginning of period
232,285 
155,476 
298,068 
179,447 
Cash and cash equivalents, end of period
107,379 
250,470 
107,379 
250,470 
SUPPLEMENTAL CASH FLOW INFORMATION
 
 
 
 
Interest paid (note 9)
21,715 
23,887 
28,547 
27,980 
Income and mining taxes paid
$ 9,367 
$ 1,286 
$ 31,000 
$ 5,591 
BASIS OF PRESENTATION
BASIS OF PRESENTATION

1.     BASIS OF PRESENTATION

  • The accompanying interim unaudited 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 ("US GAAP") in US dollars. They do not include all of the disclosures required by US GAAP for annual financial statements. Accordingly, these interim unaudited consolidated financial statements should be read in conjunction with the fiscal 2012 audited 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, 2012. In the opinion of management, the interim unaudited 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, 2013 and the results of operations and cash flows for the three and six months ended June 30, 2013 and June 30, 2012.

    Operating results for the three and six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2013

USE OF ESTIMATES
USE OF ESTIMATES

2.     USE OF ESTIMATES

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

ACCOUNTING POLICIES
ACCOUNTING POLICIES

3.     ACCOUNTING POLICIES

  • These interim unaudited consolidated financial statements follow the same accounting policies and methods of their application as the December 31, 2012 audited annual consolidated financial statements except for the recently adopted accounting pronouncements discussed below.

    Recently Adopted Accounting Pronouncements

    Disclosures about Offsetting Assets and Liabilities

    In November 2011, ASC guidance was issued relating to disclosure on offsetting financial instrument and derivative financial instrument assets and liabilities. Under the updated guidance, entities are required to disclose gross information and net information about both instruments and transactions eligible for offset in the consolidated balance sheets and instruments and transactions subject to an agreement similar to a master netting arrangement. The Company adopted this updated guidance, effective for the fiscal year beginning January 1, 2013. See notes 4 and 10 for disclosure on offsetting financial instrument and derivative financial instrument assets and liabilities.

    Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Loss

    In February 2013, ASC guidance was issued relating to the reporting of amounts reclassified out of accumulated other comprehensive loss. Under the updated guidance, entities are required to provide information about the amounts reclassified out of accumulated other comprehensive loss by component and by consolidated statement of income (loss) line item, as required under US GAAP. The Company adopted this updated guidance, effective for the fiscal year beginning January 1, 2013. See the Company's interim unaudited consolidated statements of income (loss) and comprehensive income (loss) for reporting of amounts reclassified out of accumulated other comprehensive loss.

FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT

4.     FAIR VALUE MEASUREMENT

  • ASC 820 — Fair Value Measurement and Disclosure defines fair value, establishes a framework for measuring fair value under US GAAP and requires expanded disclosures about fair value measurements including the following three fair value hierarchy levels:

    • 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; and

      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 summarizes the Company's financial assets and liabilities measured at fair value as at June 30, 2013 within the fair value hierarchy:

   
  Level 1   Level 2   Level 3   Total  
 

Financial assets:

                         
 

Trade receivables(i)

  $   $ 60,001   $   $ 60,001  
 

Available-for-sale securities(ii)

    68,805             68,805  
 

Fair value of derivative financial instruments(iii)

        7,135         7,135  
                     
 

 

  $ 68,805   $ 67,136   $   $ 135,941  
                     
 

Financial liabilities:

                         
 

Fair value of derivative financial instruments(iii)

  $   $ 1,968   $   $ 1,968  
                     
  • The following table details the Company's financial assets and liabilities measured at fair value as at December 31, 2012 within the fair value hierarchy:

   
  Level 1   Level 2   Level 3   Total  
 

Financial assets:

                         
 

Trade receivables(i)

  $   $ 67,750   $   $ 67,750  
 

Available-for-sale securities(ii)

    44,719             44,719  
 

Fair value of derivative financial instruments(iii)

        2,112         2,112  
                     
 

 

  $ 44,719   $ 69,862   $   $ 114,581  
                     
 

Financial liabilities:

                         
 

Fair value of derivative financial instruments(iii)

  $   $ 277   $   $ 277  
                     

  • (i)
    Trade receivables from provisional invoices for concentrate sales are valued using quoted forward rates derived from observable market data based on the month of expected settlement (classified within Level 2 of the fair value hierarchy).

    (ii)
    Available-for-sale securities are recorded at fair value using quoted market prices (classified within Level 1 of the fair value hierarchy).

    (iii)
    Derivative financial instruments are recorded at fair value using external broker-dealer quotations (classified within Level 2 of the fair value hierarchy).

    In the event that a decline in the fair value of an investment in available-for-sale securities occurs and the decline in value is considered to be other-than-temporary, an impairment charge is recorded in the interim unaudited consolidated statements of income (loss) and comprehensive income (loss) 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 in available-for-sale securities for which the cost basis exceeds its fair value.

PROPERTY, PLANT AND MINE DEVELOPMENT
PROPERTY, PLANT AND MINE DEVELOPMENT

5.     PROPERTY, PLANT AND MINE DEVELOPMENT

   
  As at June 30, 2013   As at December 31, 2012  
   
  Cost   Accumulated
Amortization
  Net Book
Value
  Cost   Accumulated
Amortization
  Net Book
Value
 
 

Mining properties

  $ 1,364,930   $ 110,372   $ 1,254,558   $ 1,356,227   $ 86,839   $ 1,269,388  
 

Plant and equipment

    2,595,932     719,805     1,876,127     2,538,328     617,826     1,920,502  
 

Mine development costs

    1,005,903     241,560     764,343     918,482     237,967     680,515  
 

Construction in Progress:

                                     
 

Meliadine project

    163,871         163,871     133,840         133,840  
 

La India project

    116,559         116,559     32,553         32,553  
 

Goldex mine M and E zones

    65,649         65,649     30,658         30,658  
                             
 

 

  $ 5,312,844   $ 1,071,737   $ 4,241,107   $ 5,010,088   $ 942,632   $ 4,067,456  
                             
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY

6.     SHAREHOLDERS' EQUITY

  • In 2009, the Company implemented the restricted share unit ("RSU") plan for certain employees. Effective January 1, 2012, the RSU plan was amended to include directors and senior executives of the Company.

    A deferred compensation balance is recorded for the total grant date value on the date of each RSU plan grant. The deferred compensation balance is recorded as a reduction of shareholders' equity and is amortized as compensation expense over the applicable vesting period.

    During the first quarter of 2013, the Company funded the RSU plan by transferring $19.0 million (first quarter of 2012 — $12.0 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. The common shares purchased and held by the Trust are treated as not outstanding for the basic earnings per share ("EPS") calculations. They are included in the basic EPS calculations once they have vested. All of the unvested common shares held by the Trust are included in the diluted EPS calculations.

    The following table summarizes the maximum number of common shares that would be outstanding if all instruments outstanding at June 30, 2013 were exercised:

 

Common shares outstanding at June 30, 2013

    172,914,694  
 

Employee stock options

    11,653,991  
 

Warrants

    8,600,000  
 

RSU plan

    396,685  
         
 

 

    193,565,370  
         
  • The following table provides the weighted average number of common shares used in the calculation of basic and diluted net income per share:

   
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
   
  2013   2012   2013   2012  
 

Net income (loss) for the period

  $ (24,380 ) $ 43,272   $ (521 ) $ 121,820  
                     
 

Weighted average number of common shares outstanding — basic (in thousands)

    172,572     170,985     172,426     170,937  
 

Add: Dilutive impact of employee stock options

                 
 

          Dilutive impact of warrants

                 
 

          Dilutive impact of shares related to RSU plan

        294         211  
                     
 

Weighted average number of common shares outstanding — diluted (in thousands)

    172,572     171,279     172,426     171,148  
                     
 

Net income (loss) per share — basic

  $ (0.14 ) $ 0.25   $ (0.00 ) $ 0.71  
                     
 

Net income (loss) per share — diluted

  $ (0.14 ) $ 0.25   $ (0.00 ) $ 0.71  
                     
  • Diluted net income (loss) per share has been calculated using the treasury stock method. In applying the treasury stock method, outstanding employee stock options and warrants with an exercise price greater than the average quoted market price of the common shares for the reporting period are not included in the calculation of diluted net income (loss) per share as the impact would be anti-dilutive.

    For the three and six months ended June 30, 2013, the impact of any additional shares issued under the employee stock option plan, as a result of the conversion of warrants, or related to the RSU Plan would be anti-dilutive as a result of the net loss positions. Consequently, diluted net loss per share was calculated in the same manner as basic net loss per share.

    For the three and six months ended June 30, 2012, all employee stock options and warrants were excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive.

    Accumulated other comprehensive loss

    The following table details the changes in accumulated other comprehensive loss component for the six months ended June 30, 2013:

   
  Cumulative
Translation
Adjustment
  Available-for-sale
Securities and Other Investments
  Derivative
Financial
Instruments
  Pension
Benefits
  Total  
 

Accumulated other comprehensive (loss) income, December 31, 2012

  $ (16,206 ) $ (7,680 ) $ 137   $ (3,562 ) $ (27,311 )
 

Other comprehensive loss before reclassifications

        (20,975 )   (1,851 )       (22,826 )
 

Tax expense

            489         489  
 

Reclassifications from accumulated other comprehensive (loss) income

        28,308     20     262     28,590  
 

Tax expense

            (5 )   (69 )   (74 )
                         
 

Other comprehensive income (loss) for the period

        7,333     (1,347 )   193     6,179  
                         
 

Accumulated other comprehensive loss, June 30, 2013

  $ (16,206 ) $ (347 ) $ (1,210 ) $ (3,369 ) $ (21,132 )
                         
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

7.     STOCK-BASED COMPENSATION

  • The following continuities summarize activity with respect to the Company's outstanding employee stock options:

   
  Six Months Ended
June 30, 2013
  Six Months Ended
June 30, 2012
 
   
  Number of
Employee Stock
Options
  Weighted
Average
Exercise Price
  Number of
Employee Stock
Options
  Weighted
Average
Exercise Price
 
 

Outstanding, beginning of period

    10,587,126   C$ 56.60     8,959,051   C$ 62.88  
 

Granted

    2,803,000     52.13     3,251,000     36.98  
 

Exercised

    (213,500 )   37.06     (15,250 )   37.05  
 

Forfeited

    (181,750 )   60.68     (120,750 )   60.37  
 

Expired

    (1,340,885 )   54.86     (481,650 )   47.49  
                     
 

Outstanding, end of period

    11,653,991   C$ 56.02     11,592,401   C$ 56.32  
                     
 

Exercisable, end of period

    7,469,045   C$ 59.36     7,209,989   C$ 59.20  
                     
  • Agnico Eagle estimated the fair value of employee stock options under the Black-Scholes option pricing model using the following weighted average assumptions:

   
  Six Months Ended
June 30,
 
   
  2013   2012  
 

Risk-free interest rate

    1.51%     1.25%  
 

Expected life of employee stock options (in years)

    2.7     2.8  
 

Expected volatility of Agnico Eagle's share price

    35.0%     37.5%  
 

Expected dividend yield

    1.79%     2.17%  
AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES

8.     AVAILABLE-FOR-SALE SECURITIES

  • During the three and six months ended June 30, 2013, the Company did not dispose of any available-for-sale securities. During the three and six months ended June 30, 2012, the Company received proceeds of $30.7 million and recognized a loss before income taxes of $6.7 million on the sale of certain available-for-sale securities.

    Available-for-sale securities consist of equity securities whose cost basis is determined using the average cost method. Available-for-sale securities are carried at fair value and comprise the following:

   
  As at
June 30, 2013
  As at
December 31, 2012
 
 

Available-for-sale securities in an unrealized gain position:

             
 

Cost (net of impairments)

  $ 35,745   $ 4,352  
 

Unrealized gains in accumulated other comprehensive loss

    4,327     1,902  
             
 

Estimated fair value

    40,072     6,254  
             
 

Available-for-sale securities in an unrealized loss position:

             
 

Cost (net of impairments)

    33,287     48,047  
 

Unrealized losses in accumulated other comprehensive loss

    (4,554 )   (9,582 )
             
 

Estimated fair value

    28,733     38,465  
             
 

Total estimated fair value of available-for-sale securities

  $ 68,805   $ 44,719  
             
  • The Company's investments in available-for-sale securities consist primarily of investments in common shares of entities in the mining industry. During the three and six months ended June 30, 2013, certain available-for-sale securities fell into an unrealized loss position. In each case, the Company evaluated the near-term prospects of the issuers in relation to the severity and duration of the impairment. During the three months ended June 30, 2013, the Company recorded a $17.3 million (three months ended June 30, 2012 — $11.6 million) impairment loss on certain available-for-sale securities that were determined to be other-than-temporarily impaired. During the six months ended June 30, 2013, the Company recorded a $28.3 million (six months ended June 30, 2012 — $11.6 million) impairment loss on certain available-for-sale securities that were determined to be other-than-temporarily impaired.

    At June 30, 2013, the fair value of available-for-sale securities in an unrealized loss position was $28.7 million (December 31, 2012 — $38.5 million) with total unrealized losses in accumulated other comprehensive loss of $4.6 million (December 31, 2012 — $9.6 million). Based on an evaluation of the severity and duration of the impairment of these available-for-sale securities (less than three months) and on the Company's intent to hold the investments for a period of time sufficient for a recovery of fair value, the Company does not consider these available-for-sale securities to be other-than-temporarily impaired as at June 30, 2013.

LONG-TERM DEBT
LONG-TERM DEBT

9.     LONG-TERM DEBT

  • Credit Facility

    On June 22, 2010, the Company amended and restated its Credit Facility, increasing the amount available from $900.0 million to $1,200.0 million.

    On July 20, 2012, the Company further amended the Credit Facility, extending the maturity date from June 22, 2016 to June 22, 2017 and updating pricing terms to reflect improved market conditions.

    At June 30, 2013, the Credit Facility was drawn down by $50.0 million (December 31, 2012 — $30.0 million). Amounts drawn down, together with related outstanding letters of credit, resulted in Credit Facility availability of $1,148.9 million at June 30, 2013.

    2012 Notes

    On July 24, 2012, the Company closed a private placement consisting of $200.0 million of guaranteed senior unsecured notes due in 2022 and 2024 (the "2012 Notes") with a weighted average maturity of 11.0 years and weighted average yield of 4.95%.

    The following are the individual series' of the 2012 Notes:

   
  Principal   Interest Rate   Maturity Date  
 

Series A

  $ 100,000     4.87%     7/23/2022  
 

Series B

    100,000     5.02%     7/23/2024  
                     
 

 

  $ 200,000              
                     
  • 2010 Notes

    On April 7, 2010, the Company closed a private placement consisting of $600.0 million of guaranteed senior unsecured notes due in 2017, 2020 and 2022 (the "2010 Notes") with a weighted average maturity of 9.84 years and weighted average yield of 6.59%.

    The following are the individual series' of the issued 2010 Notes:

   
  Principal   Interest Rate   Maturity Date  
 

Series A

  $ 115,000     6.13%     7/4/2017  
 

Series B

    360,000     6.67%     7/4/2020  
 

Series C

    125,000     6.77%     7/4/2022  
                     
 

 

  $ 600,000              
                     
  • Covenants

    Payment and performance of Agnico Eagle's obligations under the Credit Facility, 2012 Notes and 2010 Notes is guaranteed by each of its significant subsidiaries and certain of its other subsidiaries (the "Guarantors").

    The Credit Facility contains covenants that limit, among other things, the ability of the Company to incur additional indebtedness, make distributions in certain circumstances, sell material assets and carry on a business other than one related to the mining business.

    The 2012 Notes and 2010 Notes contain covenants that restrict, among other things, the ability of the Company to amalgamate or otherwise transfer its assets, sell material assets, carry on a business other than one related to mining and the ability of the Guarantors to incur indebtedness.

    The Credit Facility, 2012 Notes and 2010 Notes also require the Company to maintain a total net debt to EBITDA ratio below a specified maximum value as well as a minimum tangible net worth.

    The Company was in compliance with all covenants contained within the Credit Facility, 2012 Notes and 2010 Notes as at June 30, 2013.

    Interest on long-term debt

    Total long-term debt interest costs incurred during the three and six months ended June 30, 2013 were $12.4 million (three months ended June 30, 2012 — $10.9 million) and $24.7 million (six months ended June 30, 2012 — $22.4 million), respectively.

    Total interest costs capitalized to property, plant and mine development for the three and six months ended June 30, 2013 were $1.2 million (three months ended June 30, 2012 — $0.3 million) and $2.3 million (six months ended June 30, 2012 — $0.5 million), respectively.

    During the three months ended June 30, 2013, cash interest paid on the Credit Facility was $0.2 million (three months ended June 30, 2012 — $1.0 million), cash standby fees paid on the Credit Facility were $1.2 million (three months ended June 30, 2012 — $1.0 million) and cash interest paid on the 2010 Notes and 2012 Notes was $19.8 million (three months ended June 30, 2012 — $19.8 million).

    During the six months ended June 30, 2013, cash interest paid on the Credit Facility was $0.2 million (six months ended June 30, 2012 — $2.7 million), cash standby fees paid on the Credit Facility were $2.4 million (six months ended June 30, 2012 — $2.0 million) and cash interest paid on the 2010 Notes and 2012 Notes was $24.7 million (six months ended June 30, 2012 — $19.8 million).

FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS

10.   FINANCIAL INSTRUMENTS

  • Currency Risk Management

    The Company utilizes foreign exchange hedges to reduce the variability of the US dollar amount of expected future foreign currency expenditures arising from changes in currency exchange rates. Hedged items represent a portion of the Canadian dollar denominated cash outflows arising from Canadian dollar denominated expenditures.

    As at June 30, 2013, the Company had outstanding foreign exchange zero cost collars with a cash flow hedging relationship that did qualify for hedge accounting under ASC 815 — Derivatives and Hedging. The purchase of US dollar put options was financed through selling US dollar call options at a higher level such that the net premium payable to the different counterparties by the Company was nil. At June 30, 2013, the zero cost collars hedged $120.0 million of 2013 expenditures and the Company recognized a mark-to-market loss of $1.8 million in accumulated other comprehensive loss ("AOCL").

    Amounts deferred in AOCL are reclassified to the production costs line item on the interim unaudited consolidated statements of income (loss), as applicable, when the derivative financial instrument has settled. Mark-to-market gains (losses) related to foreign exchange derivative financial instruments are based on broker-dealer quotations that utilize period end forward pricing of the currency hedged to calculate fair value.

    The Company's other foreign currency derivative strategies in 2013 and 2012 consisted mainly of writing US dollar call options with short maturities to generate premiums that would, in essence, enhance the spot transaction rate received when exchanging US dollars for Canadian dollars. All of these derivative transactions expired prior to period end such that no derivatives were outstanding on June 30, 2013 or June 30, 2012. Call option premiums were recognized in the loss (gain) on derivative financial instruments line item of the interim unaudited consolidated statements of income (loss).

    Commodity Price Risk Management

    The Company uses intra-quarter zinc and copper derivative financial instruments associated with the timing of sales of the related products during 2013 and 2012 that were recognized in the loss (gain) on derivative financial instruments line item of the interim unaudited consolidated statements of income (loss). There were no zinc intra-quarter derivative financial instruments outstanding at June 30, 2013 or December 31, 2012 and there were no intra-quarter copper derivative financial instruments purchased or outstanding during the three and six months ended June 30, 2013.

    To mitigate the risks associated with fluctuating diesel fuel prices, the Company uses derivative financial instrument contracts to hedge the price on a portion of diesel fuel costs associated with the Meadowbank mine's diesel fuel exposure as it relates to operating costs. Financial contracts expiring in 2013 and totaling 0.5 million gallons of heating oil were entered into at an average price of $2.45 per gallon, which is approximately 3.0% of the Meadowbank mine's expected 2013 diesel fuel operating costs. The contracts expiring in 2013 did qualify for hedge accounting and the related market-to-market gain as at June 30, 2013 was recognized in AOCL. No heating oil financial contracts expired during the three or six months ended June 30, 2013. Amounts deferred in AOCL are reclassified to the production costs line item of the interim unaudited consolidated statements of income (loss), as applicable, when the derivative financial instrument has settled. Mark-to-market gains (losses) related to heating oil derivative financial instruments are based on broker-dealer quotations that utilize period end forward pricing to calculate fair value.

    The fair value of the Company's derivative financial instruments are reported on the fair value of derivative financial instruments line item of the interim unaudited consolidated balance sheets.

    The following table summarizes the changes in AOCL balances recorded in the interim unaudited consolidated financial statements pertaining to derivative financial instruments:

   
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
   
  2013   2012   2013   2012  
 

Accumulated other comprehensive (loss) income, beginning of period

  $ (169 ) $ 2,360   $ (260 ) $ (4,404 )
 

Other comprehensive (loss) income — foreign exchange derivative financial instruments

    (1,846 )   (5,192 )   (1,765 )   2,082  
 

Other comprehensive (loss) income — heating oil derivative financial instruments

    (86 )   46     (86 )   46  
 

Other comprehensive loss — other derivative financial instruments

        (394 )       (394 )
 

Reclassification to the interim unaudited consolidated statements of income (loss)

    10     527     20     17  
                     
 

Accumulated other comprehensive loss, end of period

  $ (2,091 ) $ (2,653 ) $ (2,091 ) $ (2,653 )
                     
  • The following table summarizes the amounts recognized in the loss (gain) on derivative financial instruments line item of the interim unaudited consolidated statements of income (loss):

   
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
   
  2013   2012   2013   2012  
 

Premiums realized on written foreign exchange call options

  $ 789   $ 608   $ 1,473   $ 1,027  
 

Mark-to-market loss on derivative equity contracts

    (2,725 )       (427 )    
 

Realized gain on zinc derivative financial instruments

                476  
 

Loss on heating oil derivative financial instruments and other

        (4,929 )       (4,929 )
                     
 

(Loss) gain on derivative financial instruments

  $ (1,936 ) $ (4,321 ) $ 1,046   $ (3,426 )
                     
COMMITMENTS AND CONTINGENCIES
CONTINGENCIES

11.   COMMITMENTS AND CONTINGENCIES

  • 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, 2013, the total amount of these guarantees was $151.5 million

SEGMENTED INFORMATION
SEGMENTED INFORMATION

12.   SEGMENTED INFORMATION

  • Agnico Eagle operates in a single industry, the exploration for and production of gold. The Company's primary operations are in Canada, Mexico and Finland. The Company identifies its reportable segments as those operations whose operating results are reviewed by the Chief Executive Officer and that represent more than 10% of the combined revenue, profit or loss or total assets of all operating segments. The following are the reportable segments of the Company and reflect 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, Meliadine project and the Regional office
 

Latin America:

  Pinos Altos mine, Creston Mascota deposit at Pinos Altos, the La India project and the Urastar properties
 

Europe:

  Kittila mine
 

Exploration:

  United States Exploration office, Europe Exploration office, Canada Exploration offices and the Latin America Exploration office
  • The accounting policies of the reportable segments are the same as those described in the accounting policies note. There are no transactions between the reportable segments affecting revenue. Production costs for the reportable segments are net of intercompany transactions. Of the $235.4 million of goodwill reflected on the interim unaudited consolidated balance sheets at June 30, 2013, $200.1 million relates to the Meliadine project which is a component of the Canada segment, $29.2 million relates to the La India project which is a component of the Latin America segment and $6.1 million relates to the May 16, 2013 acquisition of Urastar Gold Corporation which is a component of the Latin America segment.

    Corporate head office assets are included in the Canada segment and specific corporate income and expense items are noted separately below.

 
Three Months Ended June 30, 2013
  Revenues
from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Amortization of
Property, Plant
and Mine
Development
  Foreign
Currency
Translation
Gain (Loss)
  Segment
Income
(Loss)
 
 

Canada

  $ 232,251   $ (168,854 ) $   $ (55,676 ) $ 6,670   $ 14,391  
 

Latin America

    86,126     (38,938 )       (10,863 )   16,617     52,942  
 

Europe

    18,047     (18,159 )       (3,589 )   (7,697 )   (11,398 )
 

Exploration

            (11,326 )       (4,470 )   (15,796 )
                             
 

 

  $ 336,424   $ (225,951 ) $ (11,326 ) $ (70,128 ) $ 11,120   $ 40,139  
                             
 

Segment income

  $ 40,139  
 

Corporate and other:

       
 

Interest and sundry expense

    (3,734 )
 

Impairment loss on available-for-sale securities

    (17,313 )
 

Loss on derivative financial instruments

    (1,936 )
 

General and administrative

    (28,385 )
 

Provincial Capital Tax

    1,504  
 

Interest expense

    (13,735 )
                                       
 

Loss before income and mining taxes

  $ (23,460 )
                                       


 

 
Three Months Ended June 30, 2012
  Revenues
from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Amortization of
Property, Plant
and Mine
Development
  Foreign
Currency
Translation
Gain (Loss)
  Segment
Income
(Loss)
 
 

Canada

  $ 283,851   $ (155,572 ) $ (12,250 ) $ (48,799 ) $ 6,946   $ 74,176  
 

Latin America

    120,706     (40,819 )       (10,455 )   3,953     73,385  
 

Europe

    55,004     (23,515 )       (7,056 )   (152 )   24,281  
 

Exploration

            (22,036 )       262     (21,774 )
                             
 

 

  $ 459,561   $ (219,906 ) $ (34,286 ) $ (66,310 ) $ 11,009   $ 150,068  
                             
 

Segment income

  $ 150,068  
 

Corporate and other:

       
 

Interest and sundry expense

    (23 )
 

Impairment loss on available-for-sale securities

    (11,581 )
 

Loss on sale of available-for-sale securities

    (6,731 )
 

Loss on derivative financial instruments

    (4,321 )
 

General and administrative

    (32,015 )
 

Provincial capital tax

    (4,001 )
 

Interest expense

    (14,220 )
                                       
 

Income before income and mining taxes

  $ 77,176  
                                       


 

 
Six Months Ended June 30, 2013
  Revenues
from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Amortization of
Property, Plant
and Mine
Development
  Foreign
Currency
Translation
Gain (Loss)
  Segment
Income
(Loss)
 
 

Canada

  $ 491,939   $ (336,956 ) $   $ (107,192 ) $ 8,022   $ 55,813  
 

Latin America

    174,722     (73,707 )       (20,828 )   (727 )   79,460  
 

Europe

    90,185     (45,341 )       (12,179 )   3,423     36,088  
 

Exploration

            (19,897 )       (3,256 )   (23,153 )
                             
 

 

  $ 756,846   $ (456,004 ) $ (19,897 ) $ (140,199 ) $ 7,462   $ 148,208  
                             
 

Segment income

  $ 148,208  
 

Corporate and other:

       
 

Interest and sundry expense

    (3,946 )
 

Impairment loss on available-for-sale securities

    (28,308 )
 

Gain on derivative financial instruments

    1,046  
 

General and administrative

    (65,705 )
 

Provincial capital tax

    1,504  
 

Interest expense

    (27,651 )
                                       
 

Income before income and mining taxes

  $ 25,148  
                                       


 

 
Six Months Ended June 30, 2012
  Revenues
from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Amortization of
Property, Plant
and Mine
Development
  Foreign
Currency
Translation
(Loss) Gain
  Segment
Income
(Loss)
 
 

Canada

  $ 577,410   $ (309,416 ) $ (23,963 ) $ (95,904 ) $ (1,667 ) $ 146,460  
 

Latin America

    225,002     (75,980 )       (20,508 )   (1,791 )   126,723  
 

Europe

    130,083     (49,545 )       (14,451 )   (1,216 )   64,871  
 

Exploration

            (33,431 )       166     (33,265 )
                             
 

 

  $ 932,495   $ (434,941 ) $ (57,394 ) $ (130,863 ) $ (4,508 ) $ 304,789  
                             
 

Segment income

  $ 304,789  
 

Corporate and other:

       
 

Interest and sundry income

    246  
 

Impairment loss on available-for-sale securities

    (11,581 )
 

Loss on sale of available-for-sale securities

    (6,731 )
 

Loss on derivative financial instruments

    (3,426 )
 

General and administrative

    (65,943 )
 

Provincial capital tax

    (4,001 )
 

Interest expense

    (28,667 )
                                       
 

Income before income and mining taxes

  $ 184,686  
                                       


 

   
  Total Assets as at  
   
  June 30, 2013   December 31, 2012  
 

Canada

  $ 3,230,189   $ 3,279,881  
 

Latin America

    1,137,476     1,069,379  
 

Europe

    817,545     846,941  
 

Exploration

    65,590     59,641  
             
 

 

  $ 5,250,800   $ 5,255,842  
             
RECLAMATION PROVISION
RECLAMATION PROVISION

13.   RECLAMATION PROVISION

  • Agnico Eagle's reclamation provision includes both asset retirement obligations and environmental remediation liabilities. Reclamation provision estimates are based on current legislation, third party estimates, management's estimates and feasibility study calculations.

    Due to the suspension of mining operations at the Goldex mine on October 19, 2011, an environmental remediation liability was recognized. During the six months ended June 30, 2013, the Company incurred $5.5 million in remediation costs that were applied against the environmental remediation liability recognized in 2011. As at June 30, 2013, the remaining Goldex mine environmental remediation liability was $17.6 million, $6.3 million of which was classified as a current liability. The Goldex mine is part of the Canada segment as described in note 12.

ACQUISITIONS
ACQUISITIONS

14.   ACQUISITIONS

  • Urastar Gold Corporation

    On May 16, 2013, the Company completed the acquisition of all of the issued and outstanding common shares of Urastar Gold Corporation ("Urastar") pursuant to a court-approved plan of arrangement under the Business Corporations Act (British Columbia) for cash consideration of $10.1 million. The Urastar acquisition was accounted for as a business combination and goodwill of $6.1 million was recognized on the Company's consolidated balance sheets.

    The transaction costs associated with the acquisition totalling $0.7 million were expensed through the general and administrative line item of the interim unaudited consolidated statements of income (loss) and comprehensive income (loss) during the six months ended June 30, 2013.

    The following table details the allocation of the purchase price to assets acquired and liabilities assumed, based on management's estimates of fair value:

 

Total purchase price:

       
 

Cash paid for acquisition

  $ 10,127  
 

Fair value of assets acquired and liabilities assumed:

       
 

Mining properties

  $ 7,699  
 

Goodwill

    6,135  
 

Cash and cash equivalents

    76  
 

Trade receivables

    731  
 

Other current assets

    12  
 

Plant and equipment

    2  
 

Accounts payable and accrued liabilities

    (791 )
 

Other liabilities

    (1,573 )
 

Deferred tax liability

    (2,164 )
         
 

Net assets acquired

  $ 10,127  
         
  • The Company believes that goodwill for the Urastar acquisition arose principally because of the following factors: (1) the going concern value implicit in the Company's ability to sustain and/or grow its business by increasing reserves and resources through new discoveries; and (2) the requirement to record a deferred tax liability for the difference between the assigned values and the tax bases of assets acquired and liabilities assumed in a business combination at amounts that do not reflect fair value.

    Pro forma results of operations for the Company assuming the acquisition of Urastar described above had occurred as of January 1, 2012 are detailed below. On a pro forma basis, there would have been no effect on the Company's consolidated revenues.

   
  Six Months Ended
June 30, 2013
  Year Ended
December 31, 2012
 
   
  Unaudited
 
 

Pro forma net income (loss) for the period

  $ (3,015 ) $ 307,274  
 

Pro forma net income (loss) per share — basic

  $ (0.02 ) $ 1.79  
  • Grayd Resource Corporation

    On November 18, 2011, the Company acquired 94.77% of the outstanding shares of Grayd Resource Corporation ("Grayd"), on a fully-diluted basis, by way of a take-over bid. The November 18, 2011 purchase price of $222.1 million was comprised of $166.0 million in cash and 1,250,477 newly issued Agnico Eagle shares. The acquisition was accounted for as a business combination and goodwill of $29.2 million was recognized on the Company's consolidated balance sheets.

    On January 23, 2012, the Company acquired the remaining outstanding shares of Grayd it did not already own, pursuant to a previously announced compulsory acquisition carried out under the provisions of the Business Corporations Act (British Columbia). The January 23, 2012 purchase price of $11.8 million was comprised of $9.3 million in cash and 68,941 newly issued Agnico Eagle shares valued at $2.4 million. The non-controlling interest as reported on the December 31, 2011 consolidated balance sheets of the Company was eliminated as a result of this transaction.

GENERAL AND ADMINISTRATIVE
GENERAL AND ADMINISTRATIVE

15.   GENERAL AND ADMINISTRATIVE

  • Due to a kitchen fire at the Meadowbank mine in March 2011, the Company recognized a loss on disposal of the kitchen of $6.9 million, incurred related costs of $7.4 million, and recognized an insurance receivable for $11.2 million. The difference of $3.1 million was recognized in the general and administrative line item of the interim unaudited consolidated statements of income and comprehensive income during the three months ended March 31, 2011.

    During the subsequent months of 2011 and 2012, the Company received $4.6 million in insurance proceeds relating to the kitchen fire at the Meadowbank mine and had a related remaining insurance receivable of $6.6 million as at December 31, 2012 within the other current assets line item of the consolidated balance sheets. During the six months ended June 30, 2013, the Company did not receive any insurance proceeds relating to the kitchen fire at the Meadowbank mine and had a related remaining insurance receivable of $6.6 million as at June 30, 2013.

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

16.   SUBSEQUENT EVENTS

  • On July 24, 2013, Agnico Eagle announced that the Board approved the payment of a quarterly cash dividend of $0.22 per common share, payable on September 17, 2013 to holders of record of the common shares of the Company on September 3, 2013.

SECURITIES CLASS ACTION LAWSUITS
SECURITIES CLASS ACTION LAWSUITS

17.   SECURITIES CLASS ACTION LAWSUITS

  • On November 7, 2011 and November 22, 2011, the Company and certain current and former senior officers, some of whom also are or were directors of the Company, were named as defendants in two putative class action lawsuits, styled Jerome Stone v. Agnico-Eagle Mines Ltd., et al., and Chris Hastings v. Agnico-Eagle Mines Limited, et al., respectively, which were filed in the United States District Court for the Southern District of New York. On February 6, 2012, the Court ordered that the two complaints be consolidated under the caption In re Agnico-Eagle Mines Ltd. Securities Litigation, and lead counsel was appointed. On April 6, 2012, a Consolidated Complaint was issued against the Company and certain of its current and former senior officers and directors. The Consolidated Complaint alleges that the Company had violated federal securities law in connection with its disclosure related to the Goldex mine. The Consolidated Complaint seeks, among other things, damages on behalf of persons who purchased or acquired securities of the Company during the period July 28, 2010 to October 19, 2011. The Consolidated Complaint has not been certified as a class action, and the Company intends to vigorously defend it. On January 14, 2013, Judge Oetken granted the Company's motion to dismiss the Consolidated Complaint and all claims therein and denied the plaintiffs' request for leave to amend the Consolidated Complaint. On February 12, 2013, the plaintiffs filed a Notice of Appeal to the United States Court for Appeals for the Second Circuit. No date has been set for the appeal.

    On March 8, 2012 and April 10, 2012, a Notice of Action and Statement of Claim (collectively, the "Ontario Claim") were issued by William Leslie, AFA Livforsakringsaktiebolag and certain other entities against the Company and certain of its current and former officers, some of whom also are or were directors of the Company. On September 27, 2012, the plaintiffs issued a Fresh as Amended Statement of Claim. The Fresh as Amended Statement of Claim alleges that the Company's public disclosure concerning water flow issues at its Goldex mine was misleading. The Ontario Claim was issued by the plaintiffs on behalf of all persons and entities who acquired securities of the Company during the period March 26, 2010 to October 19, 2011, excluding persons resident or domiciled in the Province of Quebec at the time they purchased or acquired such securities. The plaintiffs seek, among other things, damages of C$250.0 million and to certify the Ontario Claim as a class action. On April 17, 2013 an Order was granted on consent certifying a class action proceeding and granting leave for the claims under Section 138 of the Securities Act (Ontario) to proceed. The Company intends to vigorously defend the action on the merits.

    On March 28, 2012, the Company and certain of its current and former senior officers, some of whom also are or were directors of the Company, were named as respondents in a Motion for Leave to Institute a Class Action and for the Appointment of a Representative Plaintiff (the "Quebec Motion"). The action is on behalf of all persons and entities with fewer than 50 employees resident in Quebec who acquired securities of the Company between March 26, 2010 and October 19, 2011. The proposed class action is for damages of C$100.0 million arising as a result of allegedly misleading disclosure by the Company concerning its operations at the Goldex mine. On October 15, 2012, the plaintiffs served an amended Quebec Motion seeking leave to commence an action under the Securities Act (Quebec) in addition to seeking authorization to institute a class action. No date has been set for the hearing to argue the Quebec Motion. The Company intends to vigorously contest the Quebec Motion and defend the claim.

COMPARATIVE FIGURES
COMPARATIVE FIGURES

18.   COMPARATIVE FIGURES

  • Certain figures in the comparative interim unaudited consolidated financial statements have been reclassified from statements previously presented to conform to the presentation of the 2013 interim unaudited consolidated financial statements.

FAIR VALUE MEASUREMENT (Tables)
Financial assets and liabilities measured at fair value within the fair value hierarchy
  • The following table summarizes the Company's financial assets and liabilities measured at fair value as at June 30, 2013 within the fair value hierarchy:

   
  Level 1   Level 2   Level 3   Total  
 

Financial assets:

                         
 

Trade receivables(i)

  $   $ 60,001   $   $ 60,001  
 

Available-for-sale securities(ii)

    68,805             68,805  
 

Fair value of derivative financial instruments(iii)

        7,135         7,135  
                     
 

 

  $ 68,805   $ 67,136   $   $ 135,941  
                     
 

Financial liabilities:

                         
 

Fair value of derivative financial instruments(iii)

  $   $ 1,968   $   $ 1,968  
                     
  • The following table details the Company's financial assets and liabilities measured at fair value as at December 31, 2012 within the fair value hierarchy:

   
  Level 1   Level 2   Level 3   Total  
 

Financial assets:

                         
 

Trade receivables(i)

  $   $ 67,750   $   $ 67,750  
 

Available-for-sale securities(ii)

    44,719             44,719  
 

Fair value of derivative financial instruments(iii)

        2,112         2,112  
                     
 

 

  $ 44,719   $ 69,862   $   $ 114,581  
                     
 

Financial liabilities:

                         
 

Fair value of derivative financial instruments(iii)

  $   $ 277   $   $ 277  
                     

  • (i)
    Trade receivables from provisional invoices for concentrate sales are valued using quoted forward rates derived from observable market data based on the month of expected settlement (classified within Level 2 of the fair value hierarchy).

    (ii)
    Available-for-sale securities are recorded at fair value using quoted market prices (classified within Level 1 of the fair value hierarchy).

    (iii)
    Derivative financial instruments are recorded at fair value using external broker-dealer quotations (classified within Level 2 of the fair value hierarchy).
PROPERTY, PLANT AND MINE DEVELOPMENT (Tables)
Schedule of property, plant and mine development

 

 

   
  As at June 30, 2013   As at December 31, 2012  
   
  Cost   Accumulated
Amortization
  Net Book
Value
  Cost   Accumulated
Amortization
  Net Book
Value
 
 

Mining properties

  $ 1,364,930   $ 110,372   $ 1,254,558   $ 1,356,227   $ 86,839   $ 1,269,388  
 

Plant and equipment

    2,595,932     719,805     1,876,127     2,538,328     617,826     1,920,502  
 

Mine development costs

    1,005,903     241,560     764,343     918,482     237,967     680,515  
 

Construction in Progress:

                                     
 

Meliadine project

    163,871         163,871     133,840         133,840  
 

La India project

    116,559         116,559     32,553         32,553  
 

Goldex mine M and E zones

    65,649         65,649     30,658         30,658  
                             
 

 

  $ 5,312,844   $ 1,071,737   $ 4,241,107   $ 5,010,088   $ 942,632   $ 4,067,456  
                             
SHAREHOLDERS' EQUITY (Tables)
  •  

 

 

Common shares outstanding at June 30, 2013

    172,914,694  
 

Employee stock options

    11,653,991  
 

Warrants

    8,600,000  
 

RSU plan

    396,685  
         
 

 

    193,565,370  
         
  •  

 

   
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
   
  2013   2012   2013   2012  
 

Net income (loss) for the period

  $ (24,380 ) $ 43,272   $ (521 ) $ 121,820  
                     
 

Weighted average number of common shares outstanding — basic (in thousands)

    172,572     170,985     172,426     170,937  
 

Add: Dilutive impact of employee stock options

                 
 

          Dilutive impact of warrants

                 
 

          Dilutive impact of shares related to RSU plan

        294         211  
                     
 

Weighted average number of common shares outstanding — diluted (in thousands)

    172,572     171,279     172,426     171,148  
                     
 

Net income (loss) per share — basic

  $ (0.14 ) $ 0.25   $ (0.00 ) $ 0.71  
                     
 

Net income (loss) per share — diluted

  $ (0.14 ) $ 0.25   $ (0.00 ) $ 0.71  
                     
  •  

 

   
  Cumulative
Translation
Adjustment
  Available-for-sale
Securities and Other Investments
  Derivative
Financial
Instruments
  Pension
Benefits
  Total  
 

Accumulated other comprehensive (loss) income, December 31, 2012

  $ (16,206 ) $ (7,680 ) $ 137   $ (3,562 ) $ (27,311 )
 

Other comprehensive loss before reclassifications

        (20,975 )   (1,851 )       (22,826 )
 

Tax expense

            489         489  
 

Reclassifications from accumulated other comprehensive (loss) income

        28,308     20     262     28,590  
 

Tax expense

            (5 )   (69 )   (74 )
                         
 

Other comprehensive income (loss) for the period

        7,333     (1,347 )   193     6,179  
                         
 

Accumulated other comprehensive loss, June 30, 2013

  $ (16,206 ) $ (347 ) $ (1,210 ) $ (3,369 ) $ (21,132 )
                         
STOCK-BASED COMPENSATION (Tables)
  •  

 

   
  Six Months Ended
June 30, 2013
  Six Months Ended
June 30, 2012
 
   
  Number of
Employee Stock
Options
  Weighted
Average
Exercise Price
  Number of
Employee Stock
Options
  Weighted
Average
Exercise Price
 
 

Outstanding, beginning of period

    10,587,126   C$ 56.60     8,959,051   C$ 62.88  
 

Granted

    2,803,000     52.13     3,251,000     36.98  
 

Exercised

    (213,500 )   37.06     (15,250 )   37.05  
 

Forfeited

    (181,750 )   60.68     (120,750 )   60.37  
 

Expired

    (1,340,885 )   54.86     (481,650 )   47.49  
                     
 

Outstanding, end of period

    11,653,991   C$ 56.02     11,592,401   C$ 56.32  
                     
 

Exercisable, end of period

    7,469,045   C$ 59.36     7,209,989   C$ 59.20  
                     
  •  

 

   
  Six Months Ended
June 30,
 
   
  2013   2012  
 

Risk-free interest rate

    1.51%     1.25%  
 

Expected life of employee stock options (in years)

    2.7     2.8  
 

Expected volatility of Agnico Eagle's share price

    35.0%     37.5%  
 

Expected dividend yield

    1.79%     2.17%  
AVAILABLE-FOR-SALE SECURITIES (Tables)
Schedule of available-for-sale securities
  •  

 

   
  As at
June 30, 2013
  As at
December 31, 2012
 
 

Available-for-sale securities in an unrealized gain position:

             
 

Cost (net of impairments)

  $ 35,745   $ 4,352  
 

Unrealized gains in accumulated other comprehensive loss

    4,327     1,902  
             
 

Estimated fair value

    40,072     6,254  
             
 

Available-for-sale securities in an unrealized loss position:

             
 

Cost (net of impairments)

    33,287     48,047  
 

Unrealized losses in accumulated other comprehensive loss

    (4,554 )   (9,582 )
             
 

Estimated fair value

    28,733     38,465  
             
 

Total estimated fair value of available-for-sale securities

  $ 68,805   $ 44,719  
             
LONG-TERM DEBT (Tables)
  •  

 

   
  Principal   Interest Rate   Maturity Date  
 

Series A

  $ 100,000     4.87%     7/23/2022  
 

Series B

    100,000     5.02%     7/23/2024  
                     
 

 

  $ 200,000              
                     
  •  

 

   
  Principal   Interest Rate   Maturity Date  
 

Series A

  $ 115,000     6.13%     7/4/2017  
 

Series B

    360,000     6.67%     7/4/2020  
 

Series C

    125,000     6.77%     7/4/2022  
                     
 

 

  $ 600,000              
                     
FINANCIAL INSTRUMENTS (Tables)
  •  

 

   
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
   
  2013   2012   2013   2012  
 

Accumulated other comprehensive (loss) income, beginning of period

  $ (169 ) $ 2,360   $ (260 ) $ (4,404 )
 

Other comprehensive (loss) income — foreign exchange derivative financial instruments

    (1,846 )   (5,192 )   (1,765 )   2,082  
 

Other comprehensive (loss) income — heating oil derivative financial instruments

    (86 )   46     (86 )   46  
 

Other comprehensive loss — other derivative financial instruments

        (394 )       (394 )
 

Reclassification to the interim unaudited consolidated statements of income (loss)

    10     527     20     17  
                     
 

Accumulated other comprehensive loss, end of period

  $ (2,091 ) $ (2,653 ) $ (2,091 ) $ (2,653 )
                     
  •  

 

   
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
   
  2013   2012   2013   2012  
 

Premiums realized on written foreign exchange call options

  $ 789   $ 608   $ 1,473   $ 1,027  
 

Mark-to-market loss on derivative equity contracts

    (2,725 )       (427 )    
 

Realized gain on zinc derivative financial instruments

                476  
 

Loss on heating oil derivative financial instruments and other

        (4,929 )       (4,929 )
                     
 

(Loss) gain on derivative financial instruments

  $ (1,936 ) $ (4,321 ) $ 1,046   $ (3,426 )
                     
SEGMENTED INFORMATION (Tables)
Segment reporting information
  •  

 

 
Three Months Ended June 30, 2013
  Revenues
from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Amortization of
Property, Plant
and Mine
Development
  Foreign
Currency
Translation
Gain (Loss)
  Segment
Income
(Loss)
 
 

Canada

  $ 232,251   $ (168,854 ) $   $ (55,676 ) $ 6,670   $ 14,391  
 

Latin America

    86,126     (38,938 )       (10,863 )   16,617     52,942  
 

Europe

    18,047     (18,159 )       (3,589 )   (7,697 )   (11,398 )
 

Exploration

            (11,326 )       (4,470 )   (15,796 )
                             
 

 

  $ 336,424   $ (225,951 ) $ (11,326 ) $ (70,128 ) $ 11,120   $ 40,139  
                             
 

Segment income

  $ 40,139  
 

Corporate and other:

       
 

Interest and sundry expense

    (3,734 )
 

Impairment loss on available-for-sale securities

    (17,313 )
 

Loss on derivative financial instruments

    (1,936 )
 

General and administrative

    (28,385 )
 

Provincial Capital Tax

    1,504  
 

Interest expense

    (13,735 )
                                       
 

Loss before income and mining taxes

  $ (23,460 )
                                       


 

 
Three Months Ended June 30, 2012
  Revenues
from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Amortization of
Property, Plant
and Mine
Development
  Foreign
Currency
Translation
Gain (Loss)
  Segment
Income
(Loss)
 
 

Canada

  $ 283,851   $ (155,572 ) $ (12,250 ) $ (48,799 ) $ 6,946   $ 74,176  
 

Latin America

    120,706     (40,819 )       (10,455 )   3,953     73,385  
 

Europe

    55,004     (23,515 )       (7,056 )   (152 )   24,281  
 

Exploration

            (22,036 )       262     (21,774 )
                             
 

 

  $ 459,561   $ (219,906 ) $ (34,286 ) $ (66,310 ) $ 11,009   $ 150,068  
                             
 

Segment income

  $ 150,068  
 

Corporate and other:

       
 

Interest and sundry expense

    (23 )
 

Impairment loss on available-for-sale securities

    (11,581 )
 

Loss on sale of available-for-sale securities

    (6,731 )
 

Loss on derivative financial instruments

    (4,321 )
 

General and administrative

    (32,015 )
 

Provincial capital tax

    (4,001 )
 

Interest expense

    (14,220 )
                                       
 

Income before income and mining taxes

  $ 77,176  
                                       


 

 
Six Months Ended June 30, 2013
  Revenues
from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Amortization of
Property, Plant
and Mine
Development
  Foreign
Currency
Translation
Gain (Loss)
  Segment
Income
(Loss)
 
 

Canada

  $ 491,939   $ (336,956 ) $   $ (107,192 ) $ 8,022   $ 55,813  
 

Latin America

    174,722     (73,707 )       (20,828 )   (727 )   79,460  
 

Europe

    90,185     (45,341 )       (12,179 )   3,423     36,088  
 

Exploration

            (19,897 )       (3,256 )   (23,153 )
                             
 

 

  $ 756,846   $ (456,004 ) $ (19,897 ) $ (140,199 ) $ 7,462   $ 148,208  
                             
 

Segment income

  $ 148,208  
 

Corporate and other:

       
 

Interest and sundry expense

    (3,946 )
 

Impairment loss on available-for-sale securities

    (28,308 )
 

Gain on derivative financial instruments

    1,046  
 

General and administrative

    (65,705 )
 

Provincial capital tax

    1,504  
 

Interest expense

    (27,651 )
                                       
 

Income before income and mining taxes

  $ 25,148  
                                       


 

 
Six Months Ended June 30, 2012
  Revenues
from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Amortization of
Property, Plant
and Mine
Development
  Foreign
Currency
Translation
(Loss) Gain
  Segment
Income
(Loss)
 
 

Canada

  $ 577,410   $ (309,416 ) $ (23,963 ) $ (95,904 ) $ (1,667 ) $ 146,460  
 

Latin America

    225,002     (75,980 )       (20,508 )   (1,791 )   126,723  
 

Europe

    130,083     (49,545 )       (14,451 )   (1,216 )   64,871  
 

Exploration

            (33,431 )       166     (33,265 )
                             
 

 

  $ 932,495   $ (434,941 ) $ (57,394 ) $ (130,863 ) $ (4,508 ) $ 304,789  
                             
 

Segment income

  $ 304,789  
 

Corporate and other:

       
 

Interest and sundry income

    246  
 

Impairment loss on available-for-sale securities

    (11,581 )
 

Loss on sale of available-for-sale securities

    (6,731 )
 

Loss on derivative financial instruments

    (3,426 )
 

General and administrative

    (65,943 )
 

Provincial capital tax

    (4,001 )
 

Interest expense

    (28,667 )
                                       
 

Income before income and mining taxes

  $ 184,686  
                                       


 

   
  Total Assets as at  
   
  June 30, 2013   December 31, 2012  
 

Canada

  $ 3,230,189   $ 3,279,881  
 

Latin America

    1,137,476     1,069,379  
 

Europe

    817,545     846,941  
 

Exploration

    65,590     59,641  
             
 

 

  $ 5,250,800   $ 5,255,842  
             
ACQUISITIONS (Tables)
  •  

 

 

Total purchase price:

       
 

Cash paid for acquisition

  $ 10,127  
 

Fair value of assets acquired and liabilities assumed:

       
 

Mining properties

  $ 7,699  
 

Goodwill

    6,135  
 

Cash and cash equivalents

    76  
 

Trade receivables

    731  
 

Other current assets

    12  
 

Plant and equipment

    2  
 

Accounts payable and accrued liabilities

    (791 )
 

Other liabilities

    (1,573 )
 

Deferred tax liability

    (2,164 )
         
 

Net assets acquired

  $ 10,127  
         
  •  

 

   
  Six Months Ended
June 30, 2013
  Year Ended
December 31, 2012
 
   
  Unaudited
 
 

Pro forma net income (loss) for the period

  $ (3,015 ) $ 307,274  
 

Pro forma net income (loss) per share — basic

  $ (0.02 ) $ 1.79  
FAIR VALUE MEASUREMENT (Details) (Fair value measured on recurring basis, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Level 1
 
 
Financial assets:
 
 
Available-for-sale securities
$ 68,805 
$ 44,719 
Total financial assets
68,805 
44,719 
Level 2
 
 
Financial assets:
 
 
Trade receivables
60,001 
67,750 
Fair value of derivative financial instruments
7,135 
2,112 
Total financial assets
67,136 
69,862 
Financial liabilities:
 
 
Fair value of derivative financial instruments
1,968 
277 
Total
 
 
Financial assets:
 
 
Trade receivables
60,001 
67,750 
Available-for-sale securities
68,805 
44,719 
Fair value of derivative financial instruments
7,135 
2,112 
Total financial assets
135,941 
114,581 
Financial liabilities:
 
 
Fair value of derivative financial instruments
$ 1,968 
$ 277 
PROPERTY, PLANT AND MINE DEVELOPMENT (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Dec. 31, 2012
Property, Plant and Mine Development
 
 
Cost
$ 5,312,844 
$ 5,010,088 
Accumulated Amortization
1,071,737 
942,632 
Net Book Value
4,241,107 
4,067,456 
Mining properties
 
 
Property, Plant and Mine Development
 
 
Cost
1,364,930 
1,356,227 
Accumulated Amortization
110,372 
86,839 
Net Book Value
1,254,558 
1,269,388 
Plant and equipment
 
 
Property, Plant and Mine Development
 
 
Cost
2,595,932 
2,538,328 
Accumulated Amortization
719,805 
617,826 
Net Book Value
1,876,127 
1,920,502 
Mine development costs
 
 
Property, Plant and Mine Development
 
 
Cost
1,005,903 
918,482 
Accumulated Amortization
241,560 
237,967 
Net Book Value
764,343 
680,515 
Meliadine project
 
 
Property, Plant and Mine Development
 
 
Cost
163,871 
133,840 
Net Book Value
163,871 
133,840 
La India project
 
 
Property, Plant and Mine Development
 
 
Cost
116,559 
32,553 
Net Book Value
116,559 
32,553 
Goldex mine M and E zones
 
 
Property, Plant and Mine Development
 
 
Cost
65,649 
30,658 
Net Book Value
$ 65,649 
$ 30,658 
SHAREHOLDERS' EQUITY (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Shareholders' equity
 
 
 
 
Common shares outstanding at June 30, 2013
172,914,694 
 
172,914,694 
 
Employee stock options (in shares)
11,653,991 
 
11,653,991 
 
Warrants (in shares)
8,600,000 
 
8,600,000 
 
RSU plan (in shares)
396,685 
 
396,685 
 
Maximum number of common shares (in shares)
193,565,370 
 
193,565,370 
 
Net income per share
 
 
 
 
Net income (loss) for the period
$ (24,380,000)
$ 43,272,000 
$ (521,000)
$ 121,820,000 
Weighted average number of common shares outstanding - basic (in shares)
172,572,000 
170,985,000 
172,426,000 
170,937,000 
Dilutive impact of shares related to RSU plan (in shares)
 
294,000 
 
211,000 
Weighted average number of common shares outstanding - diluted (in shares)
172,572,000 
171,279,000 
172,426,000 
171,148,000 
Net income (loss) per share - basic (in dollars per share)
$ (0.14)
$ 0.25 
$ 0.00 
$ 0.71 
Net income (loss) per share - diluted (in dollars per share)
$ (0.14)
$ 0.25 
$ 0.00 
$ 0.71 
RSU
 
 
 
 
Shareholders' equity
 
 
 
 
Amount transferred to an employee benefit trust to fund restricted share unit plan
 
 
$ 19,000,000 
$ 12,000,000 
SHAREHOLDERS' EQUITY (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Cumulative Translation Adjustment
Dec. 31, 2012
Cumulative Translation Adjustment
Jun. 30, 2013
Available-for-sale Securities and Other Investments
Jun. 30, 2013
Derivative Financial Instruments
Jun. 30, 2013
Pension Benefits
Changes in accumulated other comprehensive loss by component
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive (loss) income, beginning of period
 
 
$ (27,311)
 
$ (16,206)
$ (16,206)
$ (7,680)
$ 137 
$ (3,562)
Other comprehensive loss before reclassifications
 
 
(22,826)
 
 
 
(20,975)
(1,851)
 
Tax expense
 
 
489 
 
 
 
 
489 
 
Reclassifications from accumulated other comprehensive (loss) income
 
 
28,590 
 
 
 
28,308 
20 
262 
Tax expense
 
 
(74)
 
 
 
 
(5)
(69)
Other comprehensive income (loss) for the period
(4,809)
(6,686)
6,179 
(16,561)
 
 
7,333 
(1,347)
193 
Accumulated other comprehensive (loss) income, end of period
$ (21,132)
 
$ (21,132)
 
$ (16,206)
$ (16,206)
$ (347)
$ (1,210)
$ (3,369)
STOCK-BASED COMPENSATION (Details) (CAD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Stock options activity
 
 
Options outstanding, end of period (in shares)
11,653,991 
 
Employee Stock Option Plan
 
 
Stock options activity
 
 
Options outstanding, beginning of period (in shares)
10,587,126 
8,959,051 
Granted (in shares)
2,803,000 
3,251,000 
Exercised (in shares)
(213,500)
(15,250)
Forfeited (in shares)
(181,750)
(120,750)
Expired (in shares)
(1,340,885)
(481,650)
Options outstanding, end of period (in shares)
11,653,991 
11,592,401 
Options exercisable at end of period (in shares)
7,469,045 
7,209,9