AGNICO EAGLE MINES LTD, 40-F filed on 3/26/2014
Annual Report (foreign private issuer)
Document and Entity Information
12 Months Ended
Dec. 31, 2013
Document and Entity Information
 
Entity Registrant Name
AGNICO EAGLE MINES LTD 
Entity Central Index Key
0000002809 
Document Type
40-F 
Document Period End Date
Dec. 31, 2013 
Amendment Flag
false 
Current Fiscal Year End Date
--12-31 
Entity Current Reporting Status
Yes 
Entity Common Stock, Shares Outstanding
174,181,163 
Document Fiscal Year Focus
2013 
Document Fiscal Period Focus
FY 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
Current
 
 
Cash and cash equivalents
$ 139,101 
$ 298,068 
Short-term investments
2,217 
8,490 
Restricted cash (note 14)
28,723 
25,450 
Trade receivables (notes 1 and 4)
67,300 
67,750 
Inventories:
 
 
Ore stockpiles
39,941 
52,342 
Concentrates and dore bars
58,543 
69,695 
Supplies
253,160 
222,630 
Income taxes recoverable (note 9)
18,682 
19,313 
Available-for-sale securities (notes 2(b) and 4)
74,581 
44,719 
Fair value of derivative financial instruments (notes 4 and 15)
5,590 
2,112 
Other current assets (note 2(a))
116,993 
92,977 
Total current assets
804,831 
903,546 
Other assets (note 2(c))
66,394 
55,838 
Goodwill (notes 10 and 19)
39,017 
229,279 
Property, plant and mine development (note 3)
4,049,117 
4,067,456 
TOTAL ASSETS
4,959,359 
5,256,119 
Current
 
 
Accounts payable and accrued liabilities (note 11)
173,374 
185,329 
Reclamation provision (note 6(a))
3,452 
16,816 
Dividends payable
 
37,905 
Interest payable (note 5)
13,803 
13,602 
Income taxes payable (note 9)
7,523 
10,061 
Capital lease obligations (note 13(a))
12,035 
12,955 
Fair value of derivative financial instruments (notes 4 and 15)
467 
277 
Total current liabilities
210,654 
276,945 
Long-term debt (note 5)
1,000,000 
830,000 
Reclamation provision and other liabilities (note 6)
178,236 
127,735 
Deferred income and mining tax liabilities (note 9)
593,320 
611,227 
SHAREHOLDERS' EQUITY
 
 
Common shares (notes 7(a), 7(b) and 7(c)): Outstanding - 174,181,163 common shares issued, less 227,188 shares held in trust
3,294,007 
3,241,922 
Stock options (note 8(a))
174,470 
148,032 
Warrants (note 7(b))
 
24,858 
Contributed surplus
37,254 
15,665 
Retained earnings (deficit)
(513,441)
7,046 
Accumulated other comprehensive loss (note 7(d))
(15,141)
(27,311)
Total shareholders' equity
2,977,149 
3,410,212 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 4,959,359 
$ 5,256,119 
CONSOLIDATED BALANCE SHEETS (Parenthetical)
Dec. 31, 2013
Dec. 31, 2012
CONSOLIDATED BALANCE SHEETS
 
 
Common shares, issued
174,181,163 
172,296,610 
Number of shares of common stock held in trust
227,188 
193,740 
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
REVENUES
 
 
 
Revenues from mining operations (note 1)
$ 1,638,406 
$ 1,917,714 
$ 1,821,799 
COSTS, EXPENSES AND OTHER INCOME
 
 
 
Production
924,927 1
897,712 1
876,078 1
Exploration and corporate development
44,236 
109,500 
75,721 
Amortization of property, plant and mine development (note 3)
296,078 
271,861 
261,781 
General and administrative (note 16)
115,800 
119,085 
107,926 
Impairment loss on available-for-sale securities (note 2(b) and 4)
34,272 
12,732 
8,569 
Provincial capital tax
(1,504)
4,001 
9,223 
Interest expense (note 5)
57,999 
57,887 
55,039 
Interest and sundry expense
8,824 
2,389 
5,188 
(Gain) loss on derivative financial instruments (note 15)
(1,509)
819 
(3,683)
Gain on sale of available-for-sale securities (note 2(b))
(74)
(9,733)
(4,907)
Impairment loss (note 18)
537,227 
 
907,681 
Loss on Goldex mine (note 17)
 
 
302,893 
Foreign currency translation (gain) loss
(7,188)
16,320 
(1,082)
Income (loss) before income and mining taxes
(370,682)
435,141 
(778,628)
Income and mining taxes expense (recovery) (note 9)
35,844 
124,225 
(209,673)
Net income (loss) for the year
(406,526)
310,916 
(568,955)
Attributed to non-controlling interest
 
 
(60)
Attributed to common shareholders
(406,526)
310,916 
(568,895)
Net income (loss) per share - basic (note 7(e)) (in dollars per share)
$ (2.35)
$ 1.82 
$ (3.36)
Net income (loss) per share - diluted (note 7(e)) (in dollars per share)
$ (2.35)
$ 1.81 
$ (3.36)
Cash dividends declared per common share (note 7(a)) (in dollars per share)
$ 0.66 
$ 1.02 
   
COMPREHENSIVE INCOME (LOSS)
 
 
 
Net income (loss) for the year
(406,526)
310,916 
(568,955)
Available-for-sale securities and other investments:
 
 
 
Unrealized loss
(22,553)
(27,029)
(35,444)
Reclassification to impairment loss on available-for-sale securities (notes 2(b) and 4)
34,272 
12,732 
8,569 
Reclassification to realized gain on sale of available-for-sale securities (note 2(b))
(74)
(9,733)
(4,907)
Derivative financial instruments (note 15):
 
 
 
Unrealized (loss) gain
(284)
6,882 
(5,863)
Reclassification to production costs
(117)
(2,738)
1,459 
Pension benefits (note 6(b)):
 
 
 
Unrealized gain (loss)
375 
531 
(1,595)
Reclassification to general and administrative expense
637 
617 
540 
Income tax expense (recovery) impact of reclassification items (note 9)
(137)
558 
(556)
Income tax expense (recovery) impact of other comprehensive income (loss) items (note 9)
51 
(2,025)
2,301 
Other comprehensive income (loss) for the year
12,170 
(20,205)
(35,496)
Comprehensive income (loss) for the year
(394,356)
290,711 
(604,451)
Attributed to non-controlling interest
 
 
(60)
Attributed to common shareholders
$ (394,356)
$ 290,711 
$ (604,391)
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 Income (Loss)
Non-Controlling Interest
Balance at Dec. 31, 2010
 
$ 3,078,217 
$ 78,554 
$ 24,858 
$ 15,166 
$ 440,265 
$ 28,390 
 
Balance (in shares) at Dec. 31, 2010
 
168,720,355 
 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
 
Shares issued under employee stock option plan (note 8(a))
 
18,094 
(4,396)
 
 
 
 
 
Stock options (note 8(a))
 
 
43,536 
 
 
 
 
 
Shares issued under employee stock option plan (note 8(a)) (in shares)
 
308,688 
 
 
 
 
 
 
Shares issued under the incentive share purchase plan (note 8(b))
 
19,229 
 
 
 
 
 
 
Shares issued under the incentive share purchase plan (note 8(b)) (in shares)
 
360,833 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan
 
10,130 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan (in shares)
 
176,110 
 
 
 
 
 
 
Shares issued for purchase of mining property (notes 7(c) and 10)
 
56,146 
 
 
 
 
 
 
Shares issued for purchase of mining property (notes 7(c) and 10) (in shares)
 
1,250,477 
 
 
 
 
 
 
Non-controlling interest addition upon acquisition (note 10)
 
 
 
 
 
 
 
12,251 
Net income (loss) for the year
(568,895)
 
 
 
 
(568,895)
 
 
Net loss for the year attributed to non-controlling interest
(60)
 
 
 
 
 
 
(60)
Dividends declared ($0.66, $1.02, and nil per share for the years 2013, 2012 and 2011, respectively) (note 7(a))
 
 
 
 
 
(391)
 
 
Other comprehensive income (loss) for the year
(35,496)
 
 
 
 
 
(35,496)
 
Restricted share unit plan (note 8(c))
 
(435)
 
 
 
 
 
 
Restricted share unit plan (note 8(c)) (in shares)
 
(2,727)
 
 
 
 
 
 
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 (note 8(a))
 
22,968 
(4,759)
 
 
 
 
 
Stock options (note 8(a))
 
 
35,097 
 
 
 
 
 
Shares issued under employee stock option plan (note 8(a)) (in shares)
 
416,275 
 
 
 
 
 
 
Shares issued under the incentive share purchase plan (note 8(b))
 
21,671 
 
 
 
 
 
 
Shares issued under the incentive share purchase plan (note 8(b)) (in shares)
 
507,235 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan
 
18,907 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan (in shares)
 
444,555 
 
 
 
 
 
 
Shares issued for purchase of mining property (notes 7(c) and 10)
 
2,447 
 
 
499 
 
 
 
Shares issued for purchase of mining property (notes 7(c) and 10) (in shares)
 
68,941 
 
 
 
 
 
 
Non-controlling interest eliminated upon acquisition (note 10)
 
 
 
 
 
 
 
(12,191)
Net income (loss) for the year
310,916 
 
 
 
 
310,916 
 
 
Dividends declared ($0.66, $1.02, and nil per share for the years 2013, 2012 and 2011, respectively) (note 7(a))
 
 
 
 
 
(174,849)
 
 
Other comprehensive income (loss) for the year
(20,205)
 
 
 
 
 
(20,205)
 
Restricted share unit plan (note 8(c))
 
(5,452)
 
 
 
 
 
 
Restricted share unit plan (note 8(c)) (in shares)
 
(147,872)
 
 
 
 
 
 
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 (note 8(a))
 
9,765 
(3,292)
 
 
 
 
 
Stock options (note 8(a))
 
 
29,730 
 
 
 
 
 
Shares issued under employee stock option plan (note 8(a)) (in shares)
 
213,500 
 
 
 
 
 
 
Shares issued under the incentive share purchase plan (note 8(b))
 
23,379 
 
 
 
 
 
 
Shares issued under the incentive share purchase plan (note 8(b)) (in shares)
 
812,946 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan
 
25,837 
 
 
 
 
 
 
Shares issued under dividend reinvestment plan (in shares)
 
858,107 
 
 
 
 
 
 
Warrant expiry (note 7(b))
 
 
 
(24,858)
21,589 
 
 
 
Net income (loss) for the year
(406,526)
 
 
 
 
(406,526)
 
 
Dividends declared ($0.66, $1.02, and nil per share for the years 2013, 2012 and 2011, respectively) (note 7(a))
 
 
 
 
 
(114,118)
 
 
Other comprehensive income (loss) for the year
12,170 
 
 
 
 
 
12,170 
 
Restricted share unit plan (note 8(c))
 
(6,896)
 
 
 
157 
 
 
Restricted share unit plan (note 8(c)) (in shares)
 
(33,448)
 
 
 
 
 
 
Balance at Dec. 31, 2013
$ 2,977,149 
$ 3,294,007 
$ 174,470 
 
$ 37,254 
$ (513,441)
$ (15,141)
 
Balance (in shares) at Dec. 31, 2013
 
173,953,975 
 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
 
 
 
Dividends declared (in dollars per share)
$ 0.66 
$ 1.02 
    
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Operating activities
 
 
 
Net income (loss) for the year
$ (406,526)
$ 310,916 
$ (568,955)
Add (deduct) items not affecting cash:
 
 
 
Amortization of property, plant and mine development (note 3)
296,078 
271,861 
261,781 
Deferred income and mining taxes (note 9)
(16,550)
72,145 
(275,773)
Gain on sale of available-for-sale securities (note 2(b))
(74)
(9,733)
(4,907)
Stock-based compensation (note 8)
44,904 
47,632 
51,873 
Impairment loss on available-for-sale securities (note 2(b))
34,272 
12,732 
8,569 
Impairment loss (note 18)
537,227 
 
907,681 
Loss on Goldex mine (note 17)
 
 
302,893 
Foreign currency translation (gain) loss
(7,188)
16,320 
(1,082)
Other
23,817 
16,048 
22,992 
Adjustment for settlement of environmental remediation
(9,081)
(21,449)
(7,616)
Changes in non-cash working capital balances:
 
 
 
Trade receivables
450 
8,149 
37,050 
Income taxes
717 
13,304 
(29,867)
Inventories
(23,232)
(44,145)
(43,066)
Other current assets
(23,447)
18,909 
(25,838)
Accounts payable and accrued liabilities
(12,695)
(20,928)
31,837 
Interest payable
(376)
4,246 
(387)
Cash provided by operating activities
438,296 
696,007 
667,185 
Investing activities
 
 
 
Additions to property, plant and mine development (note 3)
(577,789)
(445,550)
(482,831)
Acquisition of Urastar Gold Corporation, net (note 10)
(10,051)
 
 
Acquisition of Grayd Resource Corporation (note 10)
 
(9,322)
(163,047)
Decrease (increase) in short-term investments
6,273 
(1,920)
5 
Net proceeds from sale of available-for-sale securities (note 2(b))
171 
73,358 
9,435 
Purchase of available-for-sale securities and warrants (note 2(b))
(59,804)
(2,713)
(91,115)
(Increase) decrease in restricted cash (note 14)
(3,273)
9,991 
(32,931)
Cash used in investing activities
(644,473)
(376,156)
(760,484)
Financing activities
 
 
 
Dividends paid
(126,266)
(118,121)
(98,354)
Repayment of capital lease obligations (note 13(a))
(10,605)
(12,063)
(13,092)
Sale-leaseback financing (note 13(a))
10,928 
 
 
Proceeds from long-term debt (note 5)
290,000 
315,000 
475,000 
Repayment of long-term debt (note 5)
(120,000)
(605,000)
(205,000)
Notes issuance (note 5)
 
200,000 
 
Long-term debt financing costs (note 5)
 
(3,133)
(2,545)
Repurchase of common shares for restricted share unit plan (note 8(c))
(19,000)
(12,031)
(3,723)
Common shares issued
23,672 
32,742 
26,536 
Cash provided by (used in) financing activities
48,729 
(202,606)
178,822 
Effect of exchange rate changes on cash and cash equivalents
(1,519)
1,376 
(1,636)
Net (decrease) increase in cash and cash equivalents during the year
(158,967)
118,621 
83,887 
Cash and cash equivalents, beginning of year
298,068 
179,447 
95,560 
Cash and cash equivalents, end of year
139,101 
298,068 
179,447 
Supplemental cash flow information
 
 
 
Interest paid
58,152 
52,213 
52,833 
Income and mining taxes paid
$ 56,478 
$ 56,962 
$ 110,889 
TRADE RECEIVABLES AND REVENUES FROM MINING OPERATIONS
TRADE RECEIVABLES AND REVENUES FROM MINING OPERATIONS

1.   TRADE RECEIVABLES AND REVENUES FROM MINING OPERATIONS

Agnico Eagle is a gold mining company with mining operations in Canada, Mexico and Finland. The Company earns a significant proportion of its revenues from the production and sale of gold in both dore bar and concentrate form. The remainder of revenue and cash flow is generated by the production and sale of byproduct metals. The revenue from byproduct metals is primarily generated by production at the LaRonde mine in Canada (silver, zinc and copper) and the Pinos Altos mine in Mexico (silver).

Revenues are generated from operations in Canada, Mexico and Finland. The cash flow and profitability of the Company's operations are significantly affected by the market price of gold and, to a lesser extent, silver, zinc, copper and lead. The prices of these metals can fluctuate significantly and are affected by numerous factors beyond the Company's control.

As gold can be sold through numerous gold market traders worldwide, the Company is not economically dependent on a limited number of customers for the sale of its product.

Trade receivables are recognized once the transfer of ownership for the metals sold has occurred and reflect the amounts owing to the Company in respect of its sales of dore bars or concentrates to third parties prior to the satisfaction in full of the payment obligations of the third parties.

    Year Ended December 31,  
   
 
   2013
   2012
   2011
  
   
Revenues from mining operations:              
Gold   $1,500,354   $1,712,665   $1,563,760  
Silver   100,895   140,221   171,725  
Zinc   16,685   45,797   70,522  
Copper   20,653   19,019   14,451  
Lead(i)   (181 ) 12   1,341  
    $1,638,406   $1,917,714   $1,821,799  

Note:

(i)
In 2013, lead revenues of $0.9 million were nettled against lead concentrate direct fees of $1.1 million. Revenues from other metals contained in lead concentrate are included in their respective categories in the above table.

In 2013, precious metals (gold and silver) accounted for 98% of Agnico Eagle's revenues from mining operations (2012 – 97%; 2011 – 95%). The remaining revenues from mining operations consisted of net byproduct metals revenues. In 2013, these net byproduct metals revenues as a percentage of total revenues from mining operations were 1% from zinc (2012 – 2%; 2011 – 4%) and 1% from copper (2012 – 1%; 2011 – 1%).

OTHER ASSETS
OTHER ASSETS

2.   OTHER ASSETS

  • (a)
    Other current assets
      As at December 31,  
   
 
   2013
   2012
  
   
Federal, provincial and other sales taxes receivable   $ 71,053   $ 36,400  
Prepaid expenses     35,396     36,119  
Insurance receivable     1,369     6,553  
Receivables from employees     780     1,800  
Retirement compensation arrangement plan refundable tax receivable     –     4,044  
Other     8,395     8,061  
    $ 116,993   $ 92,977  
  • (b)
    Available-for-sale securities

    • The Company's investments in available-for-sale securities consist primarily of investments in common shares of entities in the mining industry. The cost basis of available-for-sale securities is determined using the average cost method and they are carried at fair value. Detail on the Company's available-for-sale securities holdings is set out below:

      As at December 31,    
   
 
   2013
   2012
    
   
Available-for-sale securities in an unrealized gain position:                
Cost (net of impairments)   $ 30,583   $ 4,352    
Unrealized gains in accumulated other comprehensive loss     11,530     1,902    
Estimated fair value     42,113     6,254    

Available-for-sale securities in an unrealized loss position:
 
 
 
 
 
 
 
 
Cost (net of impairments)     39,933     48,047    
Unrealized losses in accumulated other comprehensive loss     (7,465 )   (9,582 )  
Estimated fair value     32,468     38,465    
Total estimated fair value of available-for-sale securities   $ 74,581   $ 44,719    

    • In 2013, the Company received proceeds of $0.2 million (2012 – $73.4 million; 2011 – $9.4 million) and recognized a gain before income taxes of $0.1 million (2012 – $9.7 million; 2011 – $4.9 million) on the sale of certain available-for-sale securities.

    • During the course of the year, 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 year ended December 31, 2013, the Company recorded a $34.3 million (2012 – $12.7 million; 2011 – $8.6 million) impairment loss on certain available-for-sale securities that were determined to be other-than-temporarily impaired.

      At December 31, 2013, the fair value of available-for-sale securities in an unrealized loss position was $32.5 million (December 31, 2012 – $38.5 million) with total unrealized losses in accumulated other comprehensive loss of $7.5 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 December 31, 2013.

    (c)
    Other assets
    As at December 31,  
   
 
   2013
   2012
  
   
Deferred financing costs, less accumulated amortization of $11,420 (December 31, 2012 – $8,888)   $12,644   $15,836  
Long-term ore in stockpile(i)   46,191   32,711  
Other   7,559   7,291  
    $66,394   $55,838  

Note:

(i)
Due to the ore body structures at the Pinos Altos, Kittila and Meadowbank mines, the Creston Mascota deposit at Pinos Altos and the La India project, a significant amount of drilling and blasting was undertaken early in their mine lives, resulting in long-term ore in stockpile. At December 31, 2013, long-term ore in stockpile was valued at $2.5 million (December 31, 2012 – $4.1 million) at the Pinos Altos mine, $26.7 million (December 31, 2012 – $7.7 million) at the Kittila mine, $7.8 million (December 31, 2012 – $10.2 million) at the Meadowbank mine, $8.2 million (December 31, 2012 – $10.7 million) at the Creston Mascota deposit at Pinos Altos and $1.0 million (December 31, 2012 – nil) at the La India project.
PROPERTY, PLANT AND MINE DEVELOPMENT
PROPERTY, PLANT AND MINE DEVELOPMENT

3.   PROPERTY, PLANT AND MINE DEVELOPMENT

 
   As at December 31, 2013

   As at December 31, 2012

  
   
 
 
 
   Cost
   Accumulated
Amortization
   Net Book
Value
   Cost
   Accumulated
Amortization
   Net Book
Value
  
   
Mining properties   $ 1,361,867   $ 89,700   $ 1,272,167   $ 1,356,227   $ 86,839   $ 1,269,388  
Plant and equipment     2,286,887     662,394     1,624,493     2,538,328     617,826     1,920,502  
Mine development costs     1,038,564     239,898     798,666     918,482     237,967     680,515  

Construction in progress:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Meliadine project     192,413     –     192,413     133,840     –     133,840  
La India project     161,378     –     161,378     32,553     –     32,553  
Goldex mine M and E Zones(i)     –     –     –     30,658     –     30,658  
    $ 5,041,109   $ 991,992   $ 4,049,117   $ 5,010,088   $ 942,632   $ 4,067,456  

Note:

(i)
Upon achieving commercial production at the Goldex mine M and E Zones in October 2013, related costs accumulated in construction in progress were reclassified to mine development costs within property, plant and mine development.

Geographic Information:

 
   As at December 31,

  
   
 
   2013
   2012
  
   
Northern Business:          
Canada   $2,312,166   $2,543,171  
Finland   763,711   704,031  
Southern Business:          
Mexico   962,971   809,556  
United States   10,269   10,698  
Total   $4,049,117   $4,067,456  

In 2013, Agnico Eagle capitalized $2.5 million (2012 – $1.3 million) and expensed $1.4 million (2012 – $1.2 million) of computer software expenditures. The unamortized capitalized cost for computer software at December 31, 2013 was $6.8 million (December 31, 2012 – $5.7 million).

The unamortized capitalized cost for leasehold improvements at December 31, 2013 was $3.3 million (December 31, 2012 – $3.4 million), which is being amortized on a straight-line basis over the life term of the lease plus one renewal period.

The amortization of assets recorded under capital leases is included in the amortization of property, plant and mine development line item of the consolidated statements of income (loss) and comprehensive income (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 sets out the Company's financial assets and liabilities measured at fair value as at December 31, 2013 using the fair value hierarchy:

 
   Level 1
   Level 2
   Level 3
   Total
  
   
Financial assets:                          
Trade receivables(i)   $ –   $ 67,300   $ –   $ 67,300  
Available-for-sale securities(ii)     74,581     –     –     74,581  
Fair value of derivative financial instruments(iii)     –     5,590     –     5,590  
    $ 74,581   $ 72,890   $ –   $ 147,471  

Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of derivative financial instruments(iii)   $ –   $ 467   $ –   $ 467  

The following table sets out the Company's financial assets and liabilities measured at fair value as at December 31, 2012 using 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  

Notes:

(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 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 investee data, the length of time and the extent to which the fair value has been less than cost, the financial condition of the investee and the near-term prospects of the individual investment. New evidence may 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.

As at December 31, 2013, the Company recorded impairment losses related to property, plant and mine development and goodwill (see note 18 for details). The estimated fair values of property, plant and mine development and goodwill used in determining the impairment losses followed the discounted cash flow approach. The total impairment loss recorded during 2013 was $436.3 million, net of tax (2012 – nil; 2011 – $644.9 million). The discounted cash flow approach uses significant unobservable inputs and is therefore considered a Level 3 fair value measurement under the fair value hierarchy.

LONG-TERM DEBT
LONG-TERM DEBT

5.   LONG-TERM DEBT

Credit Facility

On June 22, 2010, the Company amended and restated one of its two unsecured revolving bank credit facilities (the "Credit Facility") and terminated its other unsecured revolving bank credit facility, increasing the amount available from an aggregate of $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 amending pricing terms.

At December 31, 2013, the Credit Facility was drawn down by $200.0 million (December 31, 2012 – $30.0 million). Amounts drawn down, together with outstanding letters of credit under the Credit Facility, resulted in Credit Facility availability of $998.9 million at December 31, 2013.

2012 Notes

On July 24, 2012, the Company closed a $200.0 million private placement of guaranteed senior unsecured notes (the "2012 Notes") which, on issuance, had a weighted average maturity of 11.0 years and a weighted average yield of 4.95%.

The following table sets out details of 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 $600.0 million private placement of guaranteed senior unsecured notes (the "2010 Notes") which, on issuance, had a weighted average maturity of 9.84 years and a weighted average yield of 6.59%.

The following table sets out details of the individual series of the 2010 Notes:

 
   Principal
   Interest Rate
   Maturity Date
  
   
Series A   $ 115,000   6.13%   4/7/2017  
Series B     360,000   6.67%   4/7/2020  
Series C     125,000   6.77%   4/7/2022  
    $ 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 and sell material assets.

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 and 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 in the Credit Facility, 2012 Notes and 2010 Notes as at December 31, 2013.

Interest on long-term debt

For the year ended December 31, 2013, total interest expense was $58.0 million (2012 – $57.9 million; 2011 – $55.0 million) and total cash interest payments were $58.2 million (2012 – $52.2 million; 2011 – $52.8 million). In 2013, cash interest on the Credit Facility was $1.8 million (2012 – $3.6 million; 2011 – $1.7 million), cash standby fees on the Credit Facility were $4.8 million (2012 – $4.2 million; 2011 – $8.6 million) and cash interest on the 2010 Notes and 2012 Notes was $49.4 million (2012 – $39.5 million; 2011 – $39.5 million). In 2013, interest expenditures of $3.5 million (2012 – $1.5 million; 2011 – $1.0 million) were capitalized to construction in progress.

The Company's weighted average interest rate on all of its long-term debt as at December 31, 2013 was 5.37% (December 31, 2012 – 6.02%; December 31, 2011 – 5.02%).

RECLAMATION PROVISION AND OTHER LIABILITIES
RECLAMATION PROVISION AND OTHER LIABILITIES

6.   RECLAMATION PROVISION AND OTHER LIABILITIES

Reclamation provision and other liabilities consist of the following:

 
   As at December 31,

  
   
 
   2013
   2012
  
   
Reclamation provision (note 6(a))   $ 150,849   $ 101,753  
Long-term portion of capital lease obligations (note 13(a))     11,843     12,108  
Pension benefits (note 6(b))     15,278     13,734  
Other     266     140  
Total   $ 178,236   $ 127,735  
  • (a)
    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.

      The following table reconciles the beginning and ending carrying amounts of the Company's asset retirement obligations:

 
   2013
   2012
    
   
Asset retirement obligations – long-term, beginning of year   $ 89,720   $ 86,386    
Asset retirement obligations – current, beginning of year     4,630     –    
Current year additions and changes in estimate, net     44,898     1,495    
Current year accretion     4,624     5,068    
Liabilities settled     (853 )   (254 )  
Foreign exchange revaluation     (3,678 )   1,655    
Reclassification from long-term to current, end of year     (1,029 )   (4,630 )  
Asset retirement obligations – long-term, end of year   $ 138,312   $ 89,720    

    • Due to the suspension of mining operations on the Goldex Extension Zone ("GEZ") at the Goldex mine on October 19, 2011 (see note 17 for details), Agnico Eagle recognized an environmental remediation liability. The following table reconciles the beginning and ending carrying amounts of the Goldex mine's environmental remediation liability:

 
   2013
   2012
    
   
Environmental remediation liability – long-term, beginning of year   $ 12,033   $ 19,057    
Environmental remediation liability – current, beginning of year     12,186     26,069    
Current year additions and changes in estimate, net     1,005     (36 )  
Liabilities settled     (9,045 )   (21,450 )  
Foreign exchange revaluation     (1,219 )   579    
Reclassification from long-term to current, end of year     (2,423 )   (12,186 )  
Environmental remediation liability – long-term, end of year   $ 12,537   $ 12,033    
  • (b)
    Pension benefits

    • Agnico Eagle provides the Executives Plan for certain senior officers. The funded status of the Executives Plan is based on actuarial valuations performed as of July 1, 2013, projected to December 31, 2013 and covering the period through June 30, 2014.

      The components of Agnico Eagle's net pension benefits expense relating to the Executives Plan are as follows:

 
   Year Ended December 31,

  
   
 
 
   2013
   2012
   2011
  
   
Service cost – benefits earned during the year   $ 457   $ 650   $ 996  
Interest cost on projected benefit obligation     431     489     663  
Amortization of net transition asset     164     169     171  
Prior service cost     25     26     26  
Loss due to settlement     –     2,921     –  
Recognized net actuarial loss     379     340     245  
Net pension benefits expense   $ 1,456   $ 4,595   $ 2,101  

    • Assets for the Executives Plan consist of deposits on hand with regulatory authorities that are refundable when benefit payments are made or on the ultimate wind-up of the plan. The accumulated benefit obligation for the Executives Plan at December 31, 2013 was $9.6 million (December 31, 2012 – $9.7 million).

    • The funded status of the Executives Plan for 2013 and 2012 is as follows:

 
   2013
   2012
    
   
Reconciliation of the market value of plan assets:                
Fair value of plan assets, beginning of year   $ 2,373   $ 2,952    
Agnico Eagle's contribution     374     839    
Benefit payments     (244 )   (520 )  
Settlements     –     (961 )  
Effect of exchange rate changes     (157 )   63    
Fair value of plan assets, end of year     2,346     2,373    

Reconciliation of projected benefit obligation:
 
 
 
 
 
 
 
 
Projected benefit obligation, beginning of year     10,818     14,370    
Service cost     456     650    
Interest cost     431     489    
Net actuarial loss     573     675    
Benefit payments     (244 )   (520 )  
Settlements     –     (5,148 )  
Effect of exchange rate changes     (736 )   302    
Projected benefit obligation, end of year     11,298     10,818    
Deficiency of plan assets compared with projected benefit obligation   $ (8,952 ) $ (8,445 )  

    • The Executives Plan is comprised of the following net amounts recognized in the consolidated balance sheets:

 
   As at December 31,

  
   
 
 
   2013
   2012
  
   
Accrued employee benefit liability   $ 5,733   $ 5,008  
Accumulated other comprehensive loss:              
  Transition obligation     159     341  
  Prior service cost     24     52  
  Net actuarial loss     3,036     3,044  
Net liability   $ 8,952   $ 8,445  

Assumptions:
 
 
 
 
 
 
 
Weighted average discount rate – net periodic pension cost     4.00%     4.45%  
Weighted average discount rate – projected benefit obligation     4.90%     4.00%  
Weighted average rate of compensation increase     3.00%     3.00%  
Estimated average remaining service life for the plan (in years)(i)     5.0     6.0  

Note:

(i)
Estimated average remaining service life for the Executives Plan was developed for individual senior officers.

    • Executives Plan components expected to be recognized in accumulated other comprehensive loss in 2014:

Transition obligation   $ 159  
Prior service cost     24  
Net actuarial loss     476  
    $ 659  

    • Estimated benefit payments from the Executives Plan over the next ten years are set out below:

Year ended December 31,:
   Estimated Executives Plan
Benefit Payments

  
   
2014   $ 109  
2015   $ 107  
2016   $ 105  
2017   $ 103  
2018   $ 102  
2019 – 2023   $ 5,295  

    • In addition to the Executives Plan, the Company maintains the Basic Plan and the Supplemental Plan. Under the Basic Plan, Agnico Eagle contributes 5% of certain employees' base employment compensation to a defined contribution plan. In 2013, $12.5 million (2012 – $11.9 million; 2011 – $10.7 million) was contributed to the Basic Plan. Effective January 1, 2008, the Company adopted the Supplemental Plan for designated executives at the level of Vice-President or above. The Supplemental Plan is funded by the Company through notional contributions equal to 10% of the designated executive's earnings for the year (including salary and short-term bonus). In 2013, the Company made $1.2 million (2012 – $0.8 million; 2011 – $0.9 million) in notional contributions to the Supplemental Plan. The Supplemental Plan is accounted for as a cash balance plan.

SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY

7.   SHAREHOLDERS' EQUITY

  • (a)
    Common shares

    • The Company's authorized share capital includes an unlimited number of common shares. As at December 31, 2013, Agnico Eagle's issued common shares totaled 174,181,163 (December 31, 2012 – 172,296,610), less 227,188 common shares held by a trust in connection with the Company's restricted share unit ("RSU") plan (December 31, 2012 – 193,740 common shares held in trust). The trust is treated as a variable interest entity and, as a result, its holdings of shares are offset against the Company's issued shares in its consolidated financial statements (see note 8(c) for details).

      In 2013, the Company declared dividends on its common shares of $0.66 per share (2012 – $1.02 per share; 2011 – nil per share).

    (b)
    Private placements and warrants

    • On December 3, 2008, the Company closed a private placement of 9.2 million units, with each unit consisting of one common share and one-half of one common share purchase warrant. Each whole warrant entitled the holder to purchase one common share of the Company at a price of $47.25 per share at any time during the five-year term of the warrant. As consideration for the lead purchaser's commitment, the Company issued to the lead purchaser an additional 4.0 million warrants. The net proceeds of the private placement were approximately $281.0 million, after deducting share issue costs of $8.8 million. The warrants expired unexercised on December 3, 2013.

  • (c)
    Issuance of common shares on take-over bid

    • On November 18, 2011, the Company issued 1,250,477 common shares with a market value of $56.1 million in connection with the acquisition of 94.77% of the outstanding shares of Grayd Resource Corporation ("Grayd") under a take-over bid. On January 23, 2012, the Company issued an additional 68,941 common shares with a market value of $2.4 million in connection with the compulsory acquisition of the remaining outstanding shares of Grayd it did not already own (see note 10 for details).

    (d)
    Accumulated other comprehensive loss

    • The following table sets out the changes in accumulated other comprehensive loss by component for the year ended December 31, 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 ) $ 72   $ (3,497 ) $ (27,311 )  
Unrealized other comprehensive (loss) gain     –     (22,553 )   (284 )   375     (22,462 )  
  Income tax expense (recovery) impact     –     –     150     (99 )   51    
Reclassifications from accumulated other comprehensive (loss) income to the Consolidated Statements of Income (Loss)     –     34,198     (117 )   637     34,718    
  Income tax expense (recovery) impact     –     –     31     (168 )   (137 )  
Other comprehensive income (loss) for the year     –     11,645     (220 )   745     12,170    
Accumulated other comprehensive (loss) income, December 31, 2013   $ (16,206 ) $ 3,965   $ (148 ) $ (2,752 ) $ (15,141 )  

    • The following table sets out the changes in accumulated other comprehensive loss by component for the year ended December 31, 2012:

 
   Cumulative
Translation
Adjustment
   Available-for-sale
Securities and Other
Investments
   Derivative
Financial
Instruments
   Pension
Benefits
   Total
    
   
Accumulated other comprehensive (loss) income, December 31, 2011   $ (16,206 ) $ 16,350   $ (2,913 ) $ (4,337 ) $ (7,106 )  
Unrealized other comprehensive (loss) gain     –     (27,029 )   6,882     531     (19,616 )  
  Income tax recovery impact     –     –     (1,885 )   (140 )   (2,025 )  
Reclassifications from accumulated other comprehensive (loss) income to the Consolidated Statements of Income (Loss)     –     2,999     (2,738 )   617     878    
  Income tax expense (recovery) impact     –     –     721     (163 )   558    
Other comprehensive income (loss) for the year     –     (24,030 )   2,985     840     (20,205 )  
Accumulated other comprehensive (loss) income, December 31, 2012   $ (16,206 ) $ (7,680 ) $ 72   $ (3,497 ) $ (27,311 )  
  • (e)
    Net income (loss) per share

    • The following table sets out the weighted average number of common shares used in the calculation of basic and diluted net income (loss) per share:

 
   Year Ended December 31,

  
   
 
 
   2013
   2012
   2011
  
   
Weighted average number of common shares outstanding – basic   172,892,654   171,250,179   169,352,896  
Dilutive impact of shares related to RSU plan   –   235,436   –  
Weighted average number of common shares outstanding – diluted   172,892,654   171,485,615   169,352,896  

    • Diluted net income (loss) per share has been calculated using the treasury stock method. In applying the treasury stock method, employee stock options and warrants with an exercise price greater than the average quoted market price of the common shares for the period outstanding are not included in the calculation of diluted net income (loss) per share as the impact is anti-dilutive. In 2011, 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 have been anti-dilutive as a result of the net loss recorded for the year. Consequently, diluted net loss per share was calculated in the same manner as basic net loss per share in 2011. In 2012, 7,742,151 employee stock options and all warrants were excluded from the calculation of diluted net income per share as their impact would have been anti-dilutive. In 2013, the impact of any additional shares issued under the employee stock option plan or related to the RSU plan would have been anti-dilutive as a result of the net loss recorded for the year. Consequently, diluted net loss per share was calculated in the same manner as basic net loss per share in 2013.

STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

8.   STOCK-BASED COMPENSATION

  • (a)
    Employee Stock Option Plan ("ESOP")

    • The Company's ESOP provides for the granting of stock options to directors, officers, employees and service providers to purchase common shares. Under the ESOP, stock options are granted at the fair market value of the underlying shares on the day prior to the date of grant. The number of common shares that may be reserved for issuance to any one person pursuant to stock options (under the ESOP or otherwise), warrants, share purchase plans or other arrangements may not exceed 5% of the Company's common shares issued and outstanding at the date of grant.

      On April 24, 2001, the Compensation Committee of the Board of Directors adopted a policy pursuant to which stock options granted after that date have a maximum term of five years. In 2011, the shareholders approved a resolution to increase the number of common shares reserved for issuance under the ESOP by 3,000,000 to 23,300,000. In 2012 and 2013 the shareholders approved a further 2,500,000 and 2,000,000 common shares for issuance under the ESOP, respectively.

      Of the 2,803,000 stock options granted under the ESOP in 2013, 700,750 stock options vested immediately. The remaining stock options, all of which expire in 2018, vest in equal installments on each anniversary date of the grant over a three year period. Of the 3,257,000 stock options granted under the ESOP in 2012, 814,250 stock options vested immediately. The remaining stock options, all of which expire in 2017, vest in equal installments on each anniversary date of the grant over a three year period. Of the 2,630,785 stock options granted under the ESOP in 2011, 657,696 stock options vested immediately. The remaining stock options, all of which expire in 2016, vest in equal installments on each anniversary date of the grant over a three year period. Upon the exercise of stock options under the ESOP, the Company issues new common shares to settle the obligation.

      The following summary sets out activity with respect to Agnico Eagle's outstanding stock options:

 
   2013

   2012

   2011

  
   
 
 
   Number of
Stock Options
   Weighted
Average
Exercise
Price
   Number of
Stock
Options
   Weighted
Average
Exercise
Price
   Number of
Stock
Options
   Weighted
Average
Exercise
Price
  
   
Outstanding, beginning of year   10,587,126   C$ 56.60   8,959,051   C$ 62.88   6,762,704   C$ 56.94  
Granted   2,803,000     52.13   3,257,000     36.99   2,630,785     76.12  
Exercised   (213,500 )   37.06   (416,275 )   43.51   (308,688 )   43.62  
Forfeited   (540,206 )   58.15   (731,000 )   59.72   (125,750 )   67.47  
Expired   (1,352,885 )   54.67   (481,650 )   47.49   –     –  
Outstanding, end of year   11,283,535   C$ 56.02   10,587,126   C$ 56.60   8,959,051   C$ 62.88  
Options exercisable at end of year   7,248,295         6,510,464         5,178,172        

    • The following table sets out 2013 activity with respect to Agnico Eagle's non-vested stock options:

 
   2013

  
   
 
 
   Number of
Stock Options
   Weighted
Average Grant
Date Fair Value
  
   
Non-vested, beginning of year   4,076,662   C$13.33  
Granted   2,803,000   11.21  
Vested   (2,661,216 ) 12.84  
Forfeited (non-vested)   (183,206 ) 11.38  
Non-vested, end of year   4,035,240   C$11.44  

    • Cash received for stock options exercised in 2013 was $8.0 million (2012 – $18.2 million; 2011 – $13.6 million).

      The total intrinsic value of stock options exercised in 2013 was C$3.1 million (2012 – C$3.6 million; 2011 – C$8.0 million).

      The weighted average grant date fair value of stock options granted in 2013 was C$11.21 (2012 – C$8.29; 2011 – C$17.05). The total grant date fair value of stock options vested during 2013 was $34.2 million (2012 – $41.0 million; 2011 – $46.7 million).

      The following table summarizes information about Agnico Eagle's stock options outstanding and exercisable at December 31, 2013:

 
    
    
    
    
   Weighted
Average
Exercise Price
  
 
    
   Weighted
Average
Remaining
Contractual Life
   Weighted
Average
Exercise Price
   Number
Exercisable
  
 
   Number
Outstanding
  
 
   Stock Options Exercisable
 
Range of Exercise Prices
   Stock Options Outstanding
 
   
C$33.39 – C$59.71   7,341,556   2.81 years   C$48.28   3,851,056   C$50.50  
C$60.72 – C$83.08   3,941,979   1.14 years   70.43   3,397,239   69.46  
C$33.39 – C$83.08   11,283,535   2.23 years   C$56.02   7,248,295   C$59.39  

    • The weighted average remaining contractual term of stock options exercisable at December 31, 2013 was 1.6 years.

      The Company has reserved for issuance 11,283,535 common shares in the event that these stock options are exercised.

      The number of common shares available for the granting of stock options under the ESOP as at December 31, 2013, December 31, 2012 and December 31, 2011 was 4,807,876, 3,717,785, and 3,262,135, respectively.

    • Subsequent to the year ended December 31, 2013, on January 2, 2014, 3,177,500 stock options were granted under the ESOP, of which 794,375 stock options vested immediately. The remaining stock options, all of which expire in 2019, vest in equal installments on each anniversary date of the grant over a three year period.

      Agnico Eagle estimated the fair value of stock options under the Black-Scholes option pricing model using the following weighted average assumptions:

 
   2013
   2012
   2011
  
   
Risk-free interest rate   1.50%   1.26%   1.95%  
Expected life of stock options (in years)   2.6   2.8   2.5  
Expected volatility of Agnico Eagle's share price   35.0%   37.5%   34.70%  
Expected dividend yield   1.82%   2.14%   0.89%  

    • The Company uses historical volatility to estimate the expected volatility of Agnico Eagle's share price. The expected term of stock options granted is derived from historical data on employee exercise and post-vesting employment termination experience.

      The aggregate intrinsic value of stock options outstanding and exercisable at December 31, 2013 was nil.

      The total compensation expense for the ESOP recorded in the general and administrative line item of the consolidated statements of income (loss) and comprehensive income (loss) for 2013 was $26.4 million (2012 – $33.8 million; 2011 – $42.2 million). The total compensation cost related to non- vested stock options not yet recognized is $21.2 million as at December 31, 2013 and the weighted average period over which it is expected to be recognized is 1.7 years. Of the total compensation cost for the ESOP, $3.3 million was capitalized as part of the property, plant and mine development line item of the consolidated balance sheets in 2013 (2012 – $1.3 million; 2011 – $1.4 million).

    (b)
    Incentive Share Purchase Plan

    • On June 26, 1997, the Company's shareholders approved an incentive share purchase plan (the "Purchase Plan") to encourage directors, officers and employees ("Participants") to purchase Agnico Eagle's common shares at market value. In 2009, the Purchase Plan was amended to remove non-executive directors as eligible Participants.

      Under the Purchase Plan, Participants may contribute up to 10% of their basic annual salaries and the Company contributes an amount equal to 50% of each Participant's contribution. All common shares subscribed for under the Purchase Plan are issued by the Company. The total compensation cost recognized in 2013 related to the Purchase Plan was $7.8 million (2012 – $7.2 million; 2011 – $6.4 million).

      In 2013, 812,946 common shares were subscribed for under the Purchase Plan (2012 – 507,235; 2011 – 360,833) for a value of $23.4 million (2012 – $21.7 million; 2011 – $19.2 million). In May 2008, the Company's shareholders approved an increase in the maximum number of common shares reserved for issuance under the Purchase Plan to 5,000,000 from 2,500,000. As at December 31, 2013, Agnico Eagle has reserved for issuance 829,907 common shares (2012 – 1,642,853; 2011 – 2,150,088) under the Purchase Plan.

  • (c)
    Restricted Share Unit Plan

    • In 2009, the Company implemented the 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.

      In 2013, the Company funded the RSU plan by transferring $19.0 million (2012 – $12.0 million; 2011 – $3.7 million) to an employee benefit trust (the "Trust") that then purchased shares of the Company in the open market. The Trust is funded once per year during the first quarter of each year. 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 but are included in the basic EPS calculations once they have vested. All of the non-vested common shares held by the Trust are included in the diluted EPS calculations, unless the impact is anti-dilutive.

      Compensation expense related to the RSU plan was $12.1 million in 2013 (2012 – $6.6 million; 2011 – $3.3 million). Compensation expense related to the RSU plan is included as part of the production, general and administrative and exploration and corporate development line items of the consolidated statements of income (loss) and comprehensive income (loss), consistent with the classification of other elements of compensation expense for those employees who held RSUs.

      Subsequent to the year ended December 31, 2013, 293,041 RSUs were granted under the RSU plan which vest in 2017.

INCOME AND MINING TAXES
INCOME AND MINING TAXES

9.   INCOME AND MINING TAXES

Income and mining taxes expense (recovery) is comprised of the following geographic components:

 
   Year Ended December 31,

    
   
   
 
   2013
   2012
   2011
    
   
Current income and mining taxes:                      
  Canada   $ 7,934   $ 8,750   $ 62,382    
  Mexico     29,968     33,531     3,496    
  Finland     14,492     9,799     222    
      52,394     52,080     66,100    
Deferred income and mining taxes:                      
  Canada     (95,344 )   26,041     (341,038 )  
  Mexico     93,665     25,284     54,996    
  Finland     (14,871 )   20,820     10,269    
      (16,550 )   72,145     (275,773 )  
Income and mining taxes   $ 35,844   $ 124,225   $ (209,673 )  

Cash income and mining taxes paid in 2013 were $56.5 million (2012 – $57.0 million; 2011 – $110.9 million).

The income and mining taxes expense (recovery) is different from the amount that would have been calculated by applying the Canadian statutory income tax rate as a result of the following:

 
   2013
   2012
   2011
    
   
Combined federal and composite provincial tax rates   26.3 % 26.3 % 27.8 %  
Increase (decrease) in tax rates resulting from:                
  Provincial mining duties   1.4   3.6   5.9    
  Tax law changes   (13.6 ) –   (2.7 )  
  Impact of foreign tax rates   2.4   (1.5 ) (0.2 )  
  Permanent differences   (25.1 ) 1.0   (1.6 )  
  Valuation allowances   (0.9 ) 1.2   (0.3 )  
  Impact of changes in income tax rates   (0.2 ) (2.1 ) (2.0 )  
Actual rate as a percentage of pre-tax income   (9.7 )% 28.5 % 26.9 %  

The following table sets out the components of Agnico Eagle's deferred income and mining tax liabilities (assets):

 
   Liabilities (Assets)
as at December 31,

    
   
   
 
   2013
   2012
    
   
Mining properties   $ 808,449   $ 761,508    
Net operating and capital loss carryforwards     (129,019 )   (102,005 )  
Mining duties     (68,728 )   (36,158 )  
Reclamation provisions     (44,242 )   (42,688 )  
Valuation allowance     26,860     30,570    
Deferred income and mining tax liabilities   $ 593,320   $ 611,227    

All of Agnico Eagle's deferred income and mining tax assets and liabilities are denominated in the local currency based on the jurisdiction in which the Company paid taxes, except for Canada, and were translated into US dollars using the exchange rate in effect at the applicable consolidated balance sheet dates. For Canadian income tax purposes, for December 31, 2008 and subsequent years, the Company elected to use the US dollar as its functional currency.

The Company operates in different jurisdictions and, accordingly, it is subject to income and other taxes under the various tax regimes in the countries in which it operates. The tax rules and regulations in many countries are highly complex and subject to interpretation. The Company may be subject in the future to a review of its historic income and other tax filings and in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules and regulations to the Company's business conducted within the country involved.

A reconciliation of the beginning and ending amounts of the unrecognized tax benefits is set out below:

 
   2013
   2012
   2011
    
   
Unrecognized tax benefits, beginning of year   $ 10,867   $ 1,200   $ 1,630    
Additions (reductions)     –     9,667     (430 )  
Unrecognized tax benefit, end of year   $ 10,867   $ 10,867   $ 1,200    

The full amount of unrecognized tax benefits, if recognized, would reduce the Company's annual effective tax rate. The Company does not expect its unrecognized tax benefits to change significantly over the next year.

The Company is subject to taxes in Canada, Mexico and Finland, each with varying statutes of limitations. The 2007 through 2013 taxation years generally remain subject to examination.

ACQUISITIONS
ACQUISITIONS

10. 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 $9.8 million was recognized on the Company's consolidated balance sheets.

The transaction costs associated with the acquisition totaling $0.7 million were expensed through the general and administrative line item of the consolidated statements of income (loss) and comprehensive income (loss) during the year ended December 31, 2013.

The following table sets out 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   $ 1,994    
Goodwill     9,802    
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     (126 )  
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 mineral reserves and mineral 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.

 
   Year Ended
December 31,
2013
   Year Ended
December 31,
2012
  
   
Unaudited		  
   
Pro forma net income (loss) for the period   $ (409,020 ) $ 307,274  
Pro forma net income (loss) per share – basic   $ (2.37 ) $ 1.79  

Grayd Resource Corporation

In September 2011, Agnico Eagle entered into an acquisition agreement with Grayd, a Canadian-based natural resource company listed on the TSX Venture Exchange, pursuant to which the Company agreed to make an offer to acquire all of the issued and outstanding common shares of Grayd. On October 13, 2011, the Company made the offer by way of a take-over bid circular, as amended and supplemented on October 21, 2011.

On November 18, 2011, Agnico Eagle acquired 94.77% of the outstanding shares of Grayd on a fully-diluted basis, under the 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 Agnico Eagle common shares issued from treasury.

Transaction costs associated with the acquisition totalling $3.8 million were expensed through the interest and sundry expense (income) line item of the consolidated statements of income (loss) and comprehensive income (loss) during the fourth quarter of 2011. The Company has accounted for the purchase of Grayd as a business combination.

The following table sets out 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   $ 165,954    
Agnico Eagle common shares issued for acquisition     56,146    
Total purchase price to allocate   $ 222,100    

Fair value of assets acquired and liabilities assumed:
 
 
 
 
 
Mining properties   $ 282,000    
Goodwill     29,215    
Cash and cash equivalents     2,907    
Trade receivables     469    
Other current assets     1,700    
Equipment     56    
Accounts payable and accrued liabilities     (9,767 )  
Deferred tax liability     (72,229 )  
Non-controlling interest     (12,251 )  
Net assets acquired   $ 222,100    

The Company believes that goodwill for the Grayd 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 mineral reserves and mineral 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 Agnico Eagle assuming the acquisition of Grayd described above had occurred as of January 1, 2011 are set out below. On a pro forma basis, there would have been no effect on Agnico Eagle's consolidated revenues:

 
   Year Ended December 31, 2011

    
   
Unaudited		    
   
Pro forma net loss attributed to common shareholders   $ (582,762 )  
Pro forma net loss per share – basic   $ (3.42 )  

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 common shares.

Summit Gold Project

On December 20, 2011, the Company completed the acquisition of 100% of the Summit Gold project from Columbus Gold Corporation, subject to a 2% net smelter returns mineral production royalty reserved by Cordilleran Exploration Company. The Nevada based project's purchase price of $8.5 million, including transaction costs, was comprised entirely of cash. This transaction was accounted for as an asset acquisition.

ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

11. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

 
   As at December 31,

  
   
 
 
   2013
   2012
  
   
Trade payables   $ 80,242   $ 89,289  
Wages payable     35,881     35,752  
Accrued liabilities     16,366     27,372  
Other liabilities     40,885     32,916  
    $ 173,374   $ 185,329  

In 2013 and 2012, the other liabilities balance consisted primarily of various employee payroll tax withholdings and other payroll taxes.

COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES

12. 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 December 31, 2013, the total amount of these guarantees was $174.3 million.

Certain of the Company's properties are subject to royalty arrangements. The following are the most significant royalty arrangements:

The Company has a royalty agreement with the Finnish government relating to the Kittila mine. Starting 12 months after Kittila mine operations commenced, the Company is required to pay 2.0% on net smelter returns, defined as revenue less processing costs. The royalty is paid on a yearly basis the following year.

The Company is committed to pay a royalty on production from certain properties in the Abitibi area. The type of royalty agreements include, but are not limited to, net profits interest royalties and net smelter return royalties, with percentages ranging from 2.5% to 5.0%.

The Company is committed to pay a royalty on production from certain properties in the Pinos Altos mine area. The type of royalty agreements include, but are not limited to, net profits interest royalties and net smelter return royalties, with percentages ranging from 2.5% to 3.5%.

The Company regularly enters into various earn-in and shareholder agreements, often with commitments to pay net smelter return and other royalties.

The Company had the following purchase commitments as at December 31, 2013:

 
   Purchase
Commitments
   
2014   $13,023
2015   8,373
2016   5,832
2017   4,290
2018   4,290
Thereafter   7,272
Total   $43,080
LEASES
LEASES

13. LEASES

  • (a)
    Capital leases

    • The Company has entered into sale-leaseback agreements with third parties for various fixed and mobile equipment within Canada. These arrangements represent sale-leaseback transactions in accordance with ASC 840-40 – Sale-Leaseback Transactions. The sale-leaseback agreements have an average effective annual interest rate of 5.9% and the average length of the contracts is 4.7 years.

      All of the sale-leaseback agreements have end of lease clauses that qualify as bargain purchase options that the Company expects to execute. As at December 31, 2013, the total gross amount of assets recorded under sale-leaseback capital leases amounted to $37.6 million (2012 – $33.9 million).

      The Company has agreements with third party providers of mobile equipment that are used at the Meadowbank mine. These arrangements represent capital leases in accordance with the guidance in ASC 840-30 – Capital Leases. The leases for mobile equipment at the Meadowbank mine are for five years and the effective annual interest rate on these leases is 5.5%.

    • The following is a schedule of future minimum lease payments under capital leases together with the present value of the net minimum lease payments as at December 31, 2013:

 
   Minimum
Capital Lease
Payments
   
2014   $12,776
2015   5,678
2016   2,268
2017   2,268
2018   2,268
Thereafter   –
Total minimum lease payments   25,258
Less amount representing interest   1,380
Present value of net minimum lease payments   $23,878

    • The Company's capital lease obligations are comprised of the following:

    As at December 31,
   
 
   2013
   2012
   
Total future lease payments   $25,258   $ 26,668
Less: interest   1,380     1,605
    23,878     25,063
Less: current portion   12,035     12,955
Long-term portion of capital lease obligations   $11,843   $ 12,108

    • At December 31, 2013, the gross amount of assets recorded under capital leases, including sale-leaseback capital leases was $51.8 million (2012 – $51.0 million; 2011 – $56.9 million). The charge to income resulting from the amortization of assets recorded under capital leases is included in the amortization of property, plant and mine development line item of the consolidated statements of income (loss) and comprehensive income (loss).

    (b)
    Operating leases

    • The Company has a number of operating lease agreements involving office space. Some of the leases for office facilities contain escalation clauses for increases in operating costs and property taxes. Future minimum lease payments required to meet obligations that have initial or remaining non-cancellable lease terms in excess of one year as at December 31, 2013 are as follows:

 
   Minimum Operating
Lease Payments
   
2014   $1,783
2015   1,032
2016   822
2017   816
2018   836
Thereafter   2,470
Total   $7,759

    • The portion of operating leases relating to rental expense was $1.6 million in 2013 (2012 – $1.1 million; 2011 – $0.9 million).

RESTRICTED CASH
RESTRICTED CASH

14. RESTRICTED CASH

As part of the Company's insurance programs fronted by a third party provider and reinsured through the Company's internal insurance program, the third party provider requires that cash of $6.9 million be restricted as at December 31, 2013 (December 31, 2012 – $4.7 million).

As part of the Company's tax planning, $32.0 million was contributed to a qualified environmental trust ("QET") in December 2011 to fulfill the requirement of financial security for costs related to the environmental remediation of the Goldex mine. During the year ended December 31, 2013, $2.8 million (2012 – $12.0 million) was withdrawn from the QET to fund the environmental remediation expenditures. As at December 31, 2013, $16.8 million (December 31, 2012 – $20.7 million) remained in the QET.

On December 30, 2013, the Company deposited $5.0 million into a restricted account in connection with a Subscription Agreement to acquire 5,000 shares of Tocqueville Bullion Reserve, Ltd. at a price of $1,000 per share. The acquisition was completed subsequent to year end on January 2, 2014.

FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS

15. FINANCIAL INSTRUMENTS

From time to time, Agnico Eagle has entered into financial instruments with financial institutions in order to hedge underlying cash flow and fair value exposure arising from changes in commodity prices, interest rates, equity prices or foreign currency exchange rates.

Currency risk management

In 2013 and 2012, financial instruments that subjected Agnico Eagle to market risk and concentration of credit risk consisted primarily of cash and cash equivalents and short-term investments. Agnico Eagle places its cash and cash equivalents and short-term investments in high quality securities issued by government agencies, financial institutions and major corporations and limits the amount of credit exposure by diversifying its holdings.

Agnico Eagle generates almost all of its revenues in US dollars. The Company's Canadian operations, which include the LaRonde, Goldex, Lapa and Meadowbank mines and the Meliadine project have Canadian dollar requirements for capital, operating and exploration expenditures.

The Company uses foreign exchange hedges to reduce the variability in expected future cash flows arising from changes in foreign currency exchange rates. The hedged items represent a portion of the Canadian dollar denominated cash outflows arising from Canadian dollar denominated expenditures in 2013.

As at December 31, 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 December 31, 2013, the zero cost collars hedged $60.0 million of 2014 expenditures and the Company recognized mark-to-market adjustments in accumulated other comprehensive loss.

Amounts deferred in accumulated other comprehensive loss are reclassified to the production costs line item on the consolidated statements of income (loss) and comprehensive income (loss), as applicable, when the hedged transaction has occurred. Mark-to-market gains (losses) related to foreign exchange derivative financial instruments are recorded at fair value based on broker- dealer quotations that utilize period end forward pricing of the currency hedged.

The Company's other foreign currency derivative strategies in 2013 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 to Canadian dollars. All of these derivative transactions expired prior to year end such that no derivatives were outstanding as at December 31, 2013. The call option premiums were recognized in the loss (gain) on derivative financial instruments line item of the consolidated statements of income (loss) and comprehensive income (loss).

Commodity price risk management

The Company uses intra-quarter zinc, copper and silver derivative financial instruments associated with the timing of sales of the related products that were recognized in the (gain) loss on derivative financial instruments line item of the consolidated statements of income (loss) and comprehensive income (loss). There were no zinc, copper or silver intra-quarter derivative financial instruments outstanding at December 31, 2013 or December 31, 2012.

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 that expired in 2013 and totaled 10.5 million gallons of heating oil were entered into at an average price of $2.99 per gallon, which is approximately 55.0% of the Meadowbank mine's expected 2013 diesel fuel operating costs. These contracts did qualify for hedge accounting and the related market-to-market adjustments prior to settlement were recognized in accumulated other comprehensive loss. All heating oil derivative financial instrument contracts settled in 2013.

Amounts deferred in accumulated other comprehensive loss are reclassified to the production costs line item on the consolidated statements of income (loss) and comprehensive 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.

As at December 31, 2013 and 2012, there were no metal derivative positions. The Company may from time to time utilize short-term (including intra-quarter) financial instruments as part of its strategy to minimize risks and optimize returns on its byproduct metal sales.

Other required derivative disclosures can be found in note 7(d), accumulated other comprehensive loss.

The following table provides a summary of the amounts recognized in the (gain) loss on derivative financial instruments line item of the consolidated statements of income (loss) and comprehensive income (loss):

    Year Ended December 31,    
   
 
   2013
   2012
   2011
    
   
Premiums realized on written foreign exchange call options   $3,375   $1,505   $4,995    
Realized loss on foreign exchange forwards   –   –   (1,407 )  
Realized gain on zinc derivative financial instruments   60   430   3,419    
Realized gain on copper derivative financial instruments   –   63   79    
Realized loss on silver derivative financial instruments   –   –   (3,403 )  
Mark-to-market gain on derivative equity contracts(i)   1,389   –   –    
Mark-to-market loss on warrants(i)   (488 ) (1,294 ) –    
Realized loss on warrants   (2,827 ) –   –    
Realized loss on heating oil derivative financial instruments   –   (1,523 ) –    
Gain (loss) on derivative financial instruments   $1,509   $(819 ) $3,683    

Note:

(i)
Mark-to-market gains and losses on financial instruments that did not qualify for hedge accounting are recognized through the (gain) loss on derivative financial instruments line item of the consolidated statements of income (loss) and comprehensive income (loss) and through the other line item of the consolidated statements of cash flow.

Agnico Eagle's exposure to interest rate risk at December 31, 2013 relates to its cash and cash equivalents, short-term investments and restricted cash totaling $170.0 million (2012 – $332.0 million) and the Credit Facility. The Company's short-term investments and cash equivalents have a fixed weighted average interest rate of 0.53% (2012 – 0.47%).

The fair values of Agnico Eagle's current financial assets and liabilities approximate their carrying values as at December 31, 2013.

GENERAL AND ADMINISTRATIVE
GENERAL AND ADMINISTRATIVE

16. GENERAL AND ADMINISTRATIVE

As a result of 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 of $11.2 million. The difference of $3.1 million was recognized in the general and administrative line item of the consolidated statements of income (loss) and comprehensive income (loss) in the first quarter of 2011.

During the subsequent months of 2011, the Company received $2.4 million of insurance proceeds and had a remaining insurance receivable of $8.8 million recorded in the other current assets line item of the consolidated balance sheets as at December 31, 2011. During the year ended December 31, 2012, the Company received $2.2 million of insurance proceeds and had a remaining insurance receivable of $6.6 million as at December 31, 2012. During the year ended December 31, 2013, the Company received $5.2 million of insurance proceeds and had a remaining insurance receivable of $0.7 million as at December 31, 2013.

LOSS ON GOLDEX MINE
LOSS ON GOLDEX MINE

17. LOSS ON GOLDEX MINE

On October 19, 2011, the Company announced that it was suspending mining operations and gold production at the Goldex mine in Quebec, Canada, effective immediately. This decision followed the receipt of an opinion from a second rock mechanics consulting firm which recommended that underground mining operations be halted. It appeared that a weak volcanic rock unit in the hanging wall above the GEZ of the Goldex mine deposit had failed. This rock failure was thought to extend between the top of the deposit and surface. As a result, this structure allowed an increase in ground water to flow into the mine.

As at September 30, 2011, Agnico Eagle had written off its investment in the Goldex mine (net of expected residual value), written off the underground ore stockpile and recorded a provision for the anticipated costs of environmental remediation. Given the amount of uncertainty in estimating the fair value of the Goldex mine property, plant, and mine development, the Company determined that the fair value was equal to the residual value. All of the remaining 1.6 million ounces of proven and probable mineral reserves at the Goldex mine, other than the ore stockpiled on surface, were reclassified as mineral resources effective September 30, 2011.

The mill processed feed from the remaining surface stockpile at the Goldex mine in October 2011.

Impairment loss on Goldex mine property, plant, and mine development   $ 237,110
Loss on underground ore stockpile     16,641
Supplies inventory obsolescence provision     1,915
Increase in environmental remediation liability     47,227
Loss on Goldex mine (before income and mining taxes) for the year ended December 31, 2011   $ 302,893

The environmental remediation liability for the anticipated costs of remediation associated with the suspension of operations at the Goldex mine has required management to make estimates and judgments that affect the reported amount. In making judgments in accordance with US GAAP, the Company uses estimates based on historical experience and various assumptions that are considered reasonable in the circumstances. Actual results may differ from these estimates.

In July 2012, the Company's Board approved the development of the M and E Zones at the Goldex mine. The operations in the GEZ remain suspended indefinitely.

IMPAIRMENT LOSS
IMPAIRMENT LOSS

18. IMPAIRMENT LOSS

As at December 31, 2013

As at December 31, 2013, the Company identified the continued decline in the market price of gold as an indicator of potential impairment for the Company's long-lived assets and goodwill. As a result of the identification of this indicator, the Company evaluated its long-lived assets and goodwill for impairment on an asset group and reporting unit basis, respectively, using updated assumptions and estimates.

The following impairment losses were recorded as at December 31, 2013 as a result of the impairment evaluation:

    As at December 31, 2013    
   
 
   Pre-impairment
Carrying Value
   Impairment
Loss
   Post-impairment
Carrying Value
   Impairment Loss
(net of tax)
    
   
Property, plant and mine development:                    
  Meadowbank mine   $732,499   $(269,269 ) $463,230   $(194,511 )  
  Lapa mine   136,766   (67,894 ) 68,872   (41,687 )  
    $869,265   $(337,163 ) $532,102   $(236,198 )  

Goodwill:
 
 
 
 
 
 
 
 
 
 
  Meliadine project   $200,064   $(200,064 ) $–   $(200,064 )  
        $(537,227 )     $(436,262 )  

Estimated fair values for the Meadowbank mine and Lapa mine were calculated by discounting the estimated future net cash flows using discount rates of 6.5% and 5.5% (in nominal terms), respectively, commensurate with their individual estimated levels of risk. These calculations were based on estimates of future production levels applying gold prices of $1,238 to $1,300 per ounce (in real terms), foreign exchange rates of US$0.90:C$1.00 to US$0.93:C$1.00, inflation rates of 2.0% and capital, operating and reclamation costs based on updated life-of-mine plans. Average gold recovery rates applied were 92.3% and 78.3% for the Meadowbank mine and Lapa mine, respectively.

Estimated after-tax discounted future net cash flows of reporting units with goodwill were calculated as at December 31, 2013. These calculations were based on estimates of future production levels applying long-term gold prices of $1,238 to $1,300 per ounce (in real terms), foreign exchange rates of US$0.90:C$1.00 to US$0.93:C$1.00, inflation rates of 2.0% and capital, operating and reclamation costs based on updated life-of-mine plans. The average gold recovery rate applied to the Meliadine project was 95.1%. A discount rate of 8.0% was used to calculate the estimated after-tax discounted future net cash flows of the Meliadine project reporting unit, commensurate with its individual estimated level of risk.

Discount rates were based on each asset group's weighted average cost of capital, of which the two main components are the cost of equity and the after-tax cost of debt. Cost of equity was calculated based on the capital asset pricing model, incorporating the risk-free rate of return based on Government of Canada marketable bond yields as at the valuation date, the Company's beta coefficient adjustment to the market equity risk premium based on the volatility of the Company's return in relation to that of a comparable market portfolio, plus a size premium and Company-specific risk factor. Cost of debt was determined by applying an appropriate market indication of the Company's borrowing capabilities and the corporate income tax rate applicable to each asset group's jurisdiction.

Management's estimate of future net cash flows is subject to risk and uncertainties. Therefore, it is reasonably possible that changes could occur which may affect the recoverability of the Company's long-lived assets and goodwill. This may have a material effect on the Company's consolidated financial statements.

As at December 31, 2011

As at December 31, 2011, the Company performed a full review of the Meadowbank mine operations and updated the related life-of-mine plan. This review considered the exploration potential of the area, the mineral reserves and resources, the projected operating costs in light of the persistently high operating costs experienced since commencement of commercial operations, metallurgical performance and gold price. These served as inputs into pit optimizations to determine which reserves and resources could be economically mined and be considered as mineable mineral reserves. As a result of these factors, an updated mine plan with a shorter mine life was developed and cash flows calculated, resulting in the following impairment losses being recorded as at December 31, 2011:

    As at December 31, 2011    
   
 
   Pre-impairment
Carrying Value
   Impairment
Loss
   Post-impairment
Carrying Value
   Impairment Loss
(net of tax)
    
   
Property, plant and mine development:                    
  Meadowbank mine   $1,670,838   $(907,681 ) $763,157   $(644,903 )  

The estimated fair value of the Meadowbank mine was calculated as at December 31, 2011 by discounting the estimated future net cash flows using a 7.0% discount rate (in nominal terms), commensurate with the estimated level of risk. This calculation was based on estimates of future gold production applying long-term gold prices of $1,250 to $1,553 per ounce (in real terms), foreign exchange rates of US$0.92:C$1.00 to US$0.97:C$1.00, an inflation rate of 2.0%, increased cost estimates based on revised operating levels and an average gold recovery of 92.9%. Future expected operating costs, capital expenditures and asset retirement obligations were based on the updated life-of-mine plan.

Management's estimate of future cash flows is subject to risk and uncertainties. Therefore, it is reasonably possible that changes could occur which may affect the recoverability of the Company's long-lived assets and may have a material effect on the Company's consolidated financial statements.

SEGMENTED INFORMATION
SEGMENTED INFORMATION

19. SEGMENTED INFORMATION

Agnico Eagle operates in a single industry, namely 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. Each of the Company's significant operating mines and projects are considered to be separate segments. Certain operating segments that do not meet the quantitative thresholds are still disclosed when the Company believes that the information is useful. Segment results for 2012 and 2011 have been retrospectively revised to reflect organizational changes in 2013 that created three business units consisting of the Northern business unit, the Southern business unit, and the Exploration business unit. However, under this revised organizational structure the Chief Executive Officer also reviews segment income (defined as revenues from mining operations less production costs, exploration and corporate development and impairment losses) on a mine-by-mine basis. The following are the Company's reportable segments organized according to their relationship with the Company's three business units and reflect how the Company manages its business and how it classifies its operations for planning and measuring performance:

Northern Business:   LaRonde mine, Lapa mine, Goldex mine, Meadowbank mine, Meliadine project and Kittila mine
Southern Business:   Pinos Altos mine, Creston Mascota deposit at Pinos Altos and La India project
Exploration:   United States Exploration office, Europe Exploration office, Canada Exploration offices and 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.

Corporate and other (including Urastar) assets and specific income and expense items are set out separately below.

The Creston Mascota deposit at Pinos Altos achieved commercial production on March 1, 2011. The LaRonde mine extension achieved commercial production on December 1, 2011. The Goldex mine achieved commercial production on October 1, 2013.

Year ended
December 31, 2013
   Revenues
from Mining
Operations
   Production
Costs
   Exploration
and Corporate
Development
   Impairment
Loss
   Segment
Income
(Loss)
  
  
Northern Business:                                
LaRonde mine   $ 329,900   $ (229,911 ) $ —   $ —   $ 99,989  
Lapa mine     141,167     (69,532 )   —     (67,894 )   3,741  
Goldex mine     21,418     (13,172 )   —     —     8,246  
Meadowbank mine     591,473     (363,894 )   —     (269,269 )   (41,690 )
Meliadine project     —     —     —     (200,064 )   (200,064 )
Kittila mine     209,723     (98,446 )   —     —     111,277  
  
Total Northern Business   $ 1,293,681   $ (774,955 ) $ —   $ (537,227 ) $ (18,501 )
  

Southern Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pinos Altos mine   $ 303,203   $ (130,129 ) $ —   $ —   $ 173,074  
Creston Mascota deposit at Pinos Altos     41,522     (19,843 )   —     —     21,679  
  
Total Southern Business   $ 344,725   $ (149,972 ) $ —   $ —   $ 194,753  
  
Exploration   $ —   $ —   $ (44,236 ) $ —   $ (44,236 )
  
Segment income (loss)   $ 1,638,406   $ (924,927 ) $ (44,236 ) $ (537,227 ) $ 132,016  
  
 
Segment income   $ 132,016  
  
Corporate and other:        
  
  Foreign currency translation gain     7,188  
  
  Amortization of property, plant and mine development     (296,078 )
  
  Interest and sundry expense     (8,824 )
  
  Gain on sale of available-for-sale securities     74  
  
  Gain on derivative financial instruments     1,509  
  
  General and administrative     (115,800 )
  
  Impairment loss on available-for-sale securities     (34,272 )
  
  Provincial capital tax     1,504  
  
  Interest expense     (57,999 )
  
Loss before income and mining taxes   $ (370,682 )
  
 
Year ended
December 31, 2012
   Revenues
from Mining
Operations
   Production
Costs
   Exploration
and Corporate
Development
   Segment
Income
(Loss)
  
  
Northern Business:                          
LaRonde mine   $ 399,243   $ (225,647 ) $ —   $ 173,596  
Lapa mine     173,753     (73,376 )   —     100,377  
Goldex mine     —     —     (37,627 )   (37,627 )
Meadowbank mine     609,625     (347,710 )   —     261,915  
Kittila mine     284,429     (98,037 )   —     186,392  
  
Total Northern Business   $ 1,467,050   $ (744,770 ) $ (37,627 ) $ 684,653  
  

Southern Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pinos Altos mine   $ 363,113   $ (128,618 ) $ —   $ 234,495  
Creston Mascota deposit at Pinos Altos     87,551     (24,324 )   —     63,227  
  
Total Southern Business   $ 450,664   $ (152,942 ) $ —   $ 297,722  
  
Exploration   $ —   $ —   $ (71,873 ) $ (71,873 )
  
Segment income (loss)   $ 1,917,714   $ (897,712 ) $ (109,500 ) $ 910,502  
  
 
Segment income   $ 910,502  
  
Corporate and other:        
  
  Foreign currency translation loss     (16,320 )
  
  Amortization of property, plant and mine development     (271,861 )
  
  Interest and sundry expense     (2,389 )
  
  Gain on sale of available-for-sale securities     9,733  
  
  Loss on derivative financial instruments     (819 )
  
  General and administrative     (119,085 )
  
  Impairment loss on available-for-sale securities     (12,732 )
  
  Provincial capital tax     (4,001 )
  
  Interest expense     (57,887 )
  
Income before income and mining taxes   $ 435,141  
  
 
Year ended
December 31, 2011
 Revenues
from Mining
Operations
   Production
Costs
   Exploration
and Corporate
Development
   Loss on
Goldex
Mine
   Impairment
Loss
   Segment
(Loss)
Income
  
  
Northern Business:                                    
LaRonde mine $ 398,609   $ (209,947 ) $ —   $ —   $ —   $ 188,662  
Lapa mine   167,536     (68,599 )   —     —     —     98,937  
Goldex mine   217,662     (56,939 )   —     (302,893 )   —     (142,170 )
Meadowbank mine   434,051     (284,502 )   —     —     (907,681 )   (758,132 )
Kittila mine   225,612     (110,477 )   —     —     —     115,135  
  
Total Northern Business $ 1,443,470   $ (730,464 ) $ —   $ (302,893 ) $ (907,681 ) $ (497,568 )
  

Southern Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pinos Altos mine $ 321,074   $ (131,044 ) $ —   $ —   $ —   $ 190,030  
Creston Mascota deposit at Pinos Altos   57,255     (14,570 )   —                 42,685  
  
Total Southern Business $ 378,329   $ (145,614 ) $ —   $ —   $ —   $ 232,715  
  
Exploration $ —   $ —   $ (75,721 ) $ —   $ —   $ (75,721 )
  
Segment income (loss) $ 1,821,799   $ (876,078 ) $ (75,721 ) $ (302,893 ) $ (907,681 ) $ (340,574 )
  
 
Segment loss   $ (340,574 )
  
Corporate and other:        
  
  Foreign currency translation gain     1,082  
  
  Amortization of property, plant and mine development     (261,781 )
  
  Interest and sundry expense     (5,188 )
  
  Gain on sale of available-for-sale securities     4,907  
  
  Gain on derivative financial instruments     3,683  
  
  General and administrative     (107,926 )
  
  Impairment loss on available-for-sale securities     (8,569 )
  
  Provincial capital tax     (9,223 )
  
  Interest expense     (55,039 )
  
Loss before income and mining taxes   $ (778,628 )
  
 
      Total Assets as at December 31,
   
 
   2013
   2012
   
Northern Business:            
LaRonde mine   $ 878,719   $ 849,304
Lapa mine     78,293     168,712
Goldex mine     120,601     56,819
Meadowbank mine     711,387     1,005,890
Meliadine project     877,923     1,015,485
Kittila mine     870,332     837,002
Total Northern Business   $ 3,537,255   $ 3,933,212

Southern Business:
 
 
 
 
 
 
Pinos Altos mine   $ 537,560   $ 610,217
Creston Mascota deposit at Pinos Altos     86,185     68,735
La India project     512,450     377,049
Total Southern Business     1,136,195     1,056,001
Exploration     19,838     19,225
Corporate and other     266,071     247,681
Total   $ 4,959,359   $ 5,256,119
 
      Capital Expenditures
Year Ended December 31,
   
 
   2013
   2012
   2011
   
Northern Business:                  
LaRonde mine   $ 84,292   $ 75,214   $ 90,735
Lapa mine     22,738     18,475     18,397
Goldex mine     65,063     26,822     42,232
Meadowbank mine     76,811     105,095     116,860
Meliadine project     61,412     83,343     73,944
Kittila mine     83,770     60,036     86,514
Total Northern Business   $ 394,086   $ 368,985   $ 428,682

Southern Business:
 
 
 
 
 
 
 
 
 
Pinos Altos mine   $ 42,835   $ 24,212   $ 32,407
Creston Mascota deposit at Pinos Altos     17,582     5,777     7,559
La India project     116,786     39,236     —
Total Southern Business   $ 177,203   $ 69,225   $ 39,966
Exploration   $ —   $ 55   $ 8,561
Corporate and other   $ 6,500   $ 7,285   $ 5,622
Total   $ 577,789   $ 445,550   $ 482,831

The following table sets out the changes in the carrying amount of goodwill by segment:

 
   Meliadine project
   La India project
   Corporate
and other
   Total
  
   
 
Cost                          
  
Balance at January 1, 2013   $ 200,064   $ 29,215   $ –   $ 229,279  
  
Purchase of Urastar Gold Corporation (note 10)     –     –     9,802     9,802  
  
Balance at December 31, 2013   $ 200,064   $ 29,215   $ 9,802   $ 239,081  
  

Accumulated impairment
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Balance at January 1, 2013   $ –   $ –   $ –   $ –  
  
Impairment loss     (200,064 )   –     –     (200,064 )
  
Balance at December 31, 2013   $ (200,064 ) $ –   $ –   $ (200,064 )
  
                           
  
Carrying amount   $ –   $ 29,215   $ 9,802   $ 39,017  
  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

20. SUBSEQUENT EVENTS

On January 13, 2014, the Company executed an Asset Purchase Agreement with Alexandria Minerals Corporation ("AMC") to purchase the Akasaba West Property in Quebec, Canada for cash consideration of C$5.0 million. Agnico Eagle assumes pre-existing underlying royalty obligations under the Asset Purchase Agreement relating to specific Akasaba West Property mining claims ranging from a 2% net smelter returns production royalty to a 20% net proceeds of production royalty. The Company also entered into a 2% Net Smelter Return Royalty ("Royalty") Agreement with AMC on January 13, 2014 relating to all Akasaba West Property mineral and metal production after 210,000 ounces of gold has been produced. The Company has the right to purchase one-half of the Royalty from AMC at any time for cash consideration of C$7.0 million.

On January 28, 2014, the Company purchased common shares and warrants in a mining industry entity for total consideration of C$9.3 million.

On February 12, 2014, Agnico Eagle announced that the Board approved the payment of a quarterly cash dividend of $0.08 per common share, payable on March 17, 2014 to holders of record of the common shares of the Company on March 3, 2014.

SECURITIES CLASS ACTION LAWSUITS
SECURITIES CLASS ACTION LAWSUITS

21. 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. The appeal was heard on September 23, 2013, and on October 3, 2013 the Court of Appeals for the Second Circuit affirmed the decision below dismissing the Consolidated Complaint. The time for the plaintiffs to file a petition for a writ of certiorari, requesting a review by the United States Supreme Court, has expired and the judgment dismissing the plaintiffs' Consolidated Complaint is now final and no longer appealable.

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 April 12, 2012, two senior officers of the Company, who also are or were directors of the Company, were served with 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. On October 1, 2013, the Quebec court certified the class action on terms identical to those set out in the consent Order granted in Ontario on April 17, 2013. No date has been set for the hearing to argue the class action on the merits. The Company intends to vigorously defend the action on the merits.

TRADE RECEIVABLES AND REVENUES FROM MINING OPERATIONS (Tables)
Revenues from mining operations

 

    Year Ended December 31,  
   
 
   2013
   2012
   2011
  
   
Revenues from mining operations:              
Gold   $1,500,354   $1,712,665   $1,563,760  
Silver   100,895   140,221   171,725  
Zinc   16,685   45,797   70,522  
Copper   20,653   19,019   14,451  
Lead(i)   (181 ) 12   1,341  
    $1,638,406   $1,917,714   $1,821,799  

Note:

(i)
In 2013, lead revenues of $0.9 million were nettled against lead concentrate direct fees of $1.1 million. Revenues from other metals contained in lead concentrate are included in their respective categories in the above table.
OTHER ASSETS (Tables)
Schedule of other current assets 
      As at December 31,  
   
 
   2013
   2012
  
   
Federal, provincial and other sales taxes receivable   $ 71,053   $ 36,400  
Prepaid expenses     35,396     36,119  
Insurance receivable     1,369     6,553  
Receivables from employees     780     1,800  
Retirement compensation arrangement plan refundable tax receivable     –     4,044  
Other     8,395     8,061  
    $ 116,993   $ 92,977  
Schedule of available-for-sale securities 

    •  

      As at December 31,    
   
 
   2013
   2012
    
   
Available-for-sale securities in an unrealized gain position:                
Cost (net of impairments)   $ 30,583   $ 4,352    
Unrealized gains in accumulated other comprehensive loss     11,530     1,902    
Estimated fair value     42,113     6,254    

Available-for-sale securities in an unrealized loss position:
 
 
 
 
 
 
 
 
Cost (net of impairments)     39,933     48,047    
Unrealized losses in accumulated other comprehensive loss     (7,465 )   (9,582 )  
Estimated fair value     32,468     38,465    
Total estimated fair value of available-for-sale securities   $ 74,581   $ 44,719    
Schedule of other non-current assets 
    As at December 31,  
   
 
   2013
   2012
  
   
Deferred financing costs, less accumulated amortization of $11,420 (December 31, 2012 – $8,888)   $12,644   $15,836  
Long-term ore in stockpile(i)   46,191   32,711  
Other   7,559   7,291  
    $66,394   $55,838  

Note:

(i)
Due to the ore body structures at the Pinos Altos, Kittila and Meadowbank mines, the Creston Mascota deposit at Pinos Altos and the La India project, a significant amount of drilling and blasting was undertaken early in their mine lives, resulting in long-term ore in stockpile. At December 31, 2013, long-term ore in stockpile was valued at $2.5 million (December 31, 2012 – $4.1 million) at the Pinos Altos mine, $26.7 million (December 31, 2012 – $7.7 million) at the Kittila mine, $7.8 million (December 31, 2012 – $10.2 million) at the Meadowbank mine, $8.2 million (December 31, 2012 – $10.7 million) at the Creston Mascota deposit at Pinos Altos and $1.0 million (December 31, 2012 – nil) at the La India project.
PROPERTY, PLANT AND MINE DEVELOPMENT (Tables)
Schedule of property, plant and mine development 

 

 
   As at December 31, 2013

   As at December 31, 2012

  
   
 
 
 
   Cost
   Accumulated
Amortization
   Net Book
Value
   Cost
   Accumulated
Amortization
   Net Book
Value
  
   
Mining properties   $ 1,361,867   $ 89,700   $ 1,272,167   $ 1,356,227   $ 86,839   $ 1,269,388  
Plant and equipment     2,286,887     662,394     1,624,493     2,538,328     617,826     1,920,502  
Mine development costs     1,038,564     239,898     798,666     918,482     237,967     680,515  

Construction in progress:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Meliadine project     192,413     –     192,413     133,840     –     133,840  
La India project     161,378     –     161,378     32,553     –     32,553  
Goldex mine M and E Zones(i)     –     –     –     30,658     –     30,658  
    $ 5,041,109   $ 991,992   $ 4,049,117   $ 5,010,088   $ 942,632   $ 4,067,456  

Note:

(i)
Upon achieving commercial production at the Goldex mine M and E Zones in October 2013, related costs accumulated in construction in progress were reclassified to mine development costs within property, plant and mine development.
Schedule of property, plant and equipment, geographical information 

 

 
   As at December 31,

  
   
 
   2013
   2012
  
   
Northern Business:          
Canada   $2,312,166   $2,543,171  
Finland   763,711   704,031  
Southern Business:          
Mexico   962,971   809,556  
United States   10,269   10,698  
Total   $4,049,117   $4,067,456  
FAIR VALUE MEASUREMENT (Tables)
Financial assets and liabilities measured at fair value using the fair value hierarchy

The following table sets out the Company's financial assets and liabilities measured at fair value as at December 31, 2013 using the fair value hierarchy:

 
   Level 1
   Level 2
   Level 3
   Total
  
   
Financial assets:                          
Trade receivables(i)   $ –   $ 67,300   $ –   $ 67,300  
Available-for-sale securities(ii)     74,581     –     –     74,581  
Fair value of derivative financial instruments(iii)     –     5,590     –     5,590  
    $ 74,581   $ 72,890   $ –   $ 147,471  

Financial liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of derivative financial instruments(iii)   $ –   $ 467   $ –   $ 467  

The following table sets out the Company's financial assets and liabilities measured at fair value as at December 31, 2012 using 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  

Notes:

(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).
LONG-TERM DEBT (Tables)
Individual series of issued Notes 

The following table sets out details of 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          
Individual series of issued Notes 

The following table sets out details of the individual series of the 2010 Notes:

 
   Principal
   Interest Rate
   Maturity Date
  
   
Series A   $ 115,000   6.13%   4/7/2017  
Series B     360,000   6.67%   4/7/2020  
Series C     125,000   6.77%   4/7/2022  
    $ 600,000          
RECLAMATION PROVISION AND OTHER LIABILITIES (Tables)
Schedule of reclamation provision and other liabilities 

 

 
   As at December 31,

  
   
 
   2013
   2012
  
   
Reclamation provision (note 6(a))   $ 150,849   $ 101,753  
Long-term portion of capital lease obligations (note 13(a))     11,843     12,108  
Pension benefits (note 6(b))     15,278     13,734  
Other     266     140  
Total   $ 178,236   $ 127,735  
Reconciliation of the beginning and ending carrying amounts of the Company's asset retirement obligations 

    •  

 
   2013
   2012
    
   
Asset retirement obligations – long-term, beginning of year   $ 89,720   $ 86,386    
Asset retirement obligations – current, beginning of year     4,630     –    
Current year additions and changes in estimate, net     44,898     1,495    
Current year accretion     4,624     5,068    
Liabilities settled     (853 )   (254 )  
Foreign exchange revaluation     (3,678 )   1,655    
Reclassification from long-term to current, end of year     (1,029 )   (4,630 )  
Asset retirement obligations – long-term, end of year   $ 138,312   $ 89,720    
Components of net pension plan expense relating to the Executives Plan 

    •  

 
   Year Ended December 31,

  
   
 
 
   2013
   2012
   2011
  
   
Service cost – benefits earned during the year   $ 457   $ 650   $ 996  
Interest cost on projected benefit obligation     431     489     663  
Amortization of net transition asset     164     169     171  
Prior service cost     25     26     26  
Loss due to settlement     –     2,921     –  
Recognized net actuarial loss     379     340     245  
Net pension benefits expense   $ 1,456   $ 4,595   $ 2,101  
Schedule of funded status of Executives plan 

    •  

 
   2013
   2012
    
   
Reconciliation of the market value of plan assets:                
Fair value of plan assets, beginning of year   $ 2,373   $ 2,952    
Agnico Eagle's contribution     374     839    
Benefit payments     (244 )   (520 )  
Settlements     –     (961 )  
Effect of exchange rate changes     (157 )   63    
Fair value of plan assets, end of year     2,346     2,373    

Reconciliation of projected benefit obligation:
 
 
 
 
 
 
 
 
Projected benefit obligation, beginning of year     10,818     14,370    
Service cost     456     650    
Interest cost     431     489    
Net actuarial loss     573     675    
Benefit payments     (244 )   (520 )  
Settlements     –     (5,148 )  
Effect of exchange rate changes     (736 )   302    
Projected benefit obligation, end of year     11,298     10,818    
Deficiency of plan assets compared with projected benefit obligation   $ (8,952 ) $ (8,445 )  
Net pension amount recognized in the consolidated balance sheet and valuation assumptions 

    •  

 
   As at December 31,

  
   
 
 
   2013
   2012
  
   
Accrued employee benefit liability   $ 5,733   $ 5,008  
Accumulated other comprehensive loss:              
  Transition obligation     159     341  
  Prior service cost     24     52  
  Net actuarial loss     3,036     3,044  
Net liability   $ 8,952   $ 8,445  

Assumptions:
 
 
 
 
 
 
 
Weighted average discount rate – net periodic pension cost     4.00%     4.45%  
Weighted average discount rate – projected benefit obligation     4.90%     4.00%  
Weighted average rate of compensation increase     3.00%     3.00%  
Estimated average remaining service life for the plan (in years)(i)     5.0     6.0  

Note:

(i)
Estimated average remaining service life for the Executives Plan was developed for individual senior officers.
Components expected to be recognized in accumulated other comprehensive loss 

    •  

Transition obligation   $ 159  
Prior service cost     24  
Net actuarial loss     476  
    $ 659  
Estimated benefit payments from Executives plan 

    •  

Year ended December 31,:
   Estimated Executives Plan
Benefit Payments

  
   
2014   $ 109  
2015   $ 107  
2016   $ 105  
2017   $ 103  
2018   $ 102  
2019 – 2023   $ 5,295  
Reconciliation of the beginning and ending carrying amounts of the environmental remediation liability 

    •  

 
   2013
   2012
    
   
Environmental remediation liability – long-term, beginning of year   $ 12,033   $ 19,057    
Environmental remediation liability – current, beginning of year     12,186     26,069    
Current year additions and changes in estimate, net     1,005     (36 )  
Liabilities settled     (9,045 )   (21,450 )  
Foreign exchange revaluation     (1,219 )   579    
Reclassification from long-term to current, end of year     (2,423 )   (12,186 )  
Environmental remediation liability – long-term, end of year   $ 12,537   $ 12,033    
SHAREHOLDERS' EQUITY (Tables)
Schedule of changes in accumulated other comprehensive loss by component 

    • The following table sets out the changes in accumulated other comprehensive loss by component for the year ended December 31, 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 ) $ 72   $ (3,497 ) $ (27,311 )  
Unrealized other comprehensive (loss) gain     –     (22,553 )   (284 )   375     (22,462 )  
  Income tax expense (recovery) impact     –     –     150     (99 )   51    
Reclassifications from accumulated other comprehensive (loss) income to the Consolidated Statements of Income (Loss)     –     34,198     (117 )   637     34,718    
  Income tax expense (recovery) impact     –     –     31     (168 )   (137 )  
Other comprehensive income (loss) for the year     –     11,645     (220 )   745     12,170    
Accumulated other comprehensive (loss) income, December 31, 2013   $ (16,206 ) $ 3,965   $ (148 ) $ (2,752 ) $ (15,141 )  

    • The following table sets out the changes in accumulated other comprehensive loss by component for the year ended December 31, 2012:

 
   Cumulative
Translation
Adjustment
   Available-for-sale
Securities and Other
Investments
   Derivative
Financial
Instruments
   Pension
Benefits
   Total
    
   
Accumulated other comprehensive (loss) income, December 31, 2011   $ (16,206 ) $ 16,350   $ (2,913 ) $ (4,337 ) $ (7,106 )  
Unrealized other comprehensive (loss) gain     –     (27,029 )   6,882     531     (19,616 )  
  Income tax recovery impact     –     –     (1,885 )   (140 )   (2,025 )  
Reclassifications from accumulated other comprehensive (loss) income to the Consolidated Statements of Income (Loss)     –     2,999     (2,738 )   617     878    
  Income tax expense (recovery) impact     –     –     721     (163 )   558    
Other comprehensive income (loss) for the year     –     (24,030 )   2,985     840     (20,205 )  
Accumulated other comprehensive (loss) income, December 31, 2012   $ (16,206 ) $ (7,680 ) $ 72   $ (3,497 ) $ (27,311 )  
Schedule of the weighted average number of common shares used in the calculation of basic and diluted net income (loss) per share 

    •  

 
   Year Ended December 31,

  
   
 
 
   2013
   2012
   2011
  
   
Weighted average number of common shares outstanding – basic   172,892,654   171,250,179   169,352,896  
Dilutive impact of shares related to RSU plan   –   235,436   –  
Weighted average number of common shares outstanding – diluted   172,892,654   171,485,615   169,352,896  
STOCK-BASED COMPENSATION (Tables)
Stock option activity 

    •  

 
   2013

   2012

   2011

  
   
 
 
   Number of
Stock Options
   Weighted
Average
Exercise
Price
   Number of
Stock
Options
   Weighted
Average
Exercise
Price
   Number of
Stock
Options
   Weighted
Average
Exercise
Price
  
   
Outstanding, beginning of year   10,587,126   C$ 56.60   8,959,051   C$ 62.88   6,762,704   C$ 56.94  
Granted   2,803,000     52.13   3,257,000     36.99   2,630,785     76.12  
Exercised   (213,500 )   37.06   (416,275 )   43.51   (308,688 )   43.62  
Forfeited   (540,206 )   58.15   (731,000 )   59.72   (125,750 )   67.47  
Expired   (1,352,885 )   54.67   (481,650 )   47.49   –     –  
Outstanding, end of year   11,283,535   C$ 56.02   10,587,126   C$ 56.60   8,959,051   C$ 62.88  
Options exercisable at end of year   7,248,295         6,510,464         5,178,172        
Activity of nonvested stock options 

    •  

 
   2013

  
   
 
 
   Number of
Stock Options
   Weighted
Average Grant
Date Fair Value
  
   
Non-vested, beginning of year   4,076,662   C$13.33  
Granted   2,803,000   11.21  
Vested   (2,661,216 ) 12.84  
Forfeited (non-vested)   (183,206 ) 11.38  
Non-vested, end of year   4,035,240   C$11.44  
Options outstanding and exercisable by exercise price ranges 

    • The following table summarizes information about Agnico Eagle's stock options outstanding and exercisable at December 31, 2013:

 
    
    
    
    
   Weighted
Average
Exercise Price
  
 
    
   Weighted
Average
Remaining
Contractual Life
   Weighted
Average
Exercise Price
   Number
Exercisable
  
 
   Number
Outstanding
  
 
   Stock Options Exercisable
 
Range of Exercise Prices
   Stock Options Outstanding
 
   
C$33.39 – C$59.71   7,341,556   2.81 years   C$48.28   3,851,056   C$50.50  
C$60.72 – C$83.08   3,941,979   1.14 years   70.43   3,397,239   69.46  
C$33.39 – C$83.08   11,283,535   2.23 years   C$56.02   7,248,295   C$59.39  
Schedule of weighted average assumptions under the Black-Scholes option pricing model 

    •  

 
   2013
   2012
   2011
  
   
Risk-free interest rate   1.50%   1.26%   1.95%  
Expected life of stock options (in years)   2.6   2.8   2.5  
Expected volatility of Agnico Eagle's share price   35.0%   37.5%   34.70%  
Expected dividend yield   1.82%   2.14%   0.89%  
INCOME AND MINING TAXES (Tables)
Income and mining taxes expense (recovery) as per geographic components 

 

 
   Year Ended December 31,

    
   
   
 
   2013
   2012
   2011
    
   
Current income and mining taxes:                      
  Canada   $ 7,934   $ 8,750   $ 62,382    
  Mexico     29,968     33,531     3,496    
  Finland     14,492     9,799     222    
      52,394     52,080     66,100    
Deferred income and mining taxes:                      
  Canada     (95,344 )   26,041     (341,038 )  
  Mexico     93,665     25,284     54,996    
  Finland     (14,871 )   20,820     10,269    
      (16,550 )   72,145     (275,773 )  
Income and mining taxes   $ 35,844   $ 124,225   $ (209,673 )  
Reconciliation of income tax rates 

 

 
   2013
   2012
   2011
    
   
Combined federal and composite provincial tax rates   26.3 % 26.3 % 27.8 %  
Increase (decrease) in tax rates resulting from:                
  Provincial mining duties   1.4   3.6   5.9    
  Tax law changes   (13.6 ) –   (2.7 )  
  Impact of foreign tax rates   2.4   (1.5 ) (0.2 )  
  Permanent differences   (25.1 ) 1.0   (1.6 )  
  Valuation allowances   (0.9 ) 1.2   (0.3 )  
  Impact of changes in income tax rates   (0.2 ) (2.1 ) (2.0 )  
Actual rate as a percentage of pre-tax income   (9.7 )% 28.5 % 26.9 %  
Future income and mining tax liabilities (assets) 

 

 
   Liabilities (Assets)
as at December 31,

    
   
   
 
   2013
   2012
    
   
Mining properties   $ 808,449   $ 761,508    
Net operating and capital loss carryforwards     (129,019 )   (102,005 )  
Mining duties     (68,728 )   (36,158 )  
Reclamation provisions     (44,242 )   (42,688 )  
Valuation allowance     26,860     30,570    
Deferred income and mining tax liabilities   $ 593,320   $ 611,227    
Reconciliation of the beginning and ending amount of unrecognized tax benefits 

 

 
   2013
   2012
   2011
    
   
Unrecognized tax benefits, beginning of year   $ 10,867   $ 1,200   $ 1,630    
Additions (reductions)     –     9,667     (430 )  
Unrecognized tax benefit, end of year   $ 10,867   $ 10,867   $ 1,200    
ACQUISITIONS (Tables)
Schedule of the allocation of the purchase price to assets acquired and liabilities assumed 

 

Total purchase price:          
Cash paid for acquisition   $ 10,127    

Fair value of assets acquired and liabilities assumed:
 
 
 
 
 
Mining properties   $ 1,994    
Goodwill     9,802    
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     (126 )  
Net assets acquired   $ 10,127    
Schedule of pro forma results of operations 

 

 
   Year Ended
December 31,
2013
   Year Ended
December 31,
2012
  
   
Unaudited		  
   
Pro forma net income (loss) for the period   $ (409,020 ) $ 307,274  
Pro forma net income (loss) per share – basic   $ (2.37 ) $ 1.79  
Schedule of the allocation of the purchase price to assets acquired and liabilities assumed 

 

Total purchase price:          
Cash paid for acquisition   $ 165,954    
Agnico Eagle common shares issued for acquisition     56,146    
Total purchase price to allocate   $ 222,100    

Fair value of assets acquired and liabilities assumed:
 
 
 
 
 
Mining properties   $ 282,000    
Goodwill     29,215    
Cash and cash equivalents     2,907    
Trade receivables     469    
Other current assets     1,700    
Equipment     56    
Accounts payable and accrued liabilities     (9,767 )  
Deferred tax liability     (72,229 )  
Non-controlling interest     (12,251 )  
Net assets acquired   $ 222,100    
Schedule of pro forma results of operations 

 

 
   Year Ended December 31, 2011

    
   
Unaudited		    
   
Pro forma net loss attributed to common shareholders   $ (582,762 )  
Pro forma net loss per share – basic   $ (3.42 )  
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)
Schedule of accounts payable and accrued liabilities

 

 
   As at December 31,

  
   
 
 
   2013
   2012
  
   
Trade payables   $ 80,242   $ 89,289  
Wages payable     35,881     35,752  
Accrued liabilities     16,366     27,372  
Other liabilities     40,885     32,916  
    $ 173,374   $ 185,329  
COMMITMENTS AND CONTINGENCIES (Tables)
Summary of purchase commitments by year

The Company had the following purchase commitments as at December 31, 2013:

 
   Purchase
Commitments
   
2014   $13,023
2015   8,373
2016   5,832
2017   4,290
2018   4,290
Thereafter   7,272
Total   $43,080
LEASES (Tables)
Schedule of future minimum lease payments under capital leases 

    • The following is a schedule of future minimum lease payments under capital leases together with the present value of the net minimum lease payments as at December 31, 2013:

 
   Minimum
Capital Lease
Payments
   
2014   $12,776
2015   5,678
2016   2,268
2017   2,268
2018   2,268
Thereafter   –
Total minimum lease payments   25,258
Less amount representing interest   1,380
Present value of net minimum lease payments   $23,878
Summary of information related to capital lease obligations 

    •  

    As at December 31,
   
 
   2013
   2012
   
Total future lease payments   $25,258   $ 26,668
Less: interest   1,380     1,605
    23,878     25,063
Less: current portion   12,035     12,955
Long-term portion of capital lease obligations   $11,843   $ 12,108
Schedule of future minimum lease payments under operating leases 

    • Future minimum lease payments required to meet obligations that have initial or remaining non-cancellable lease terms in excess of one year as at December 31, 2013 are as follows:

 
   Minimum Operating
Lease Payments
   
2014   $1,783
2015   1,032
2016   822
2017   816
2018   836
Thereafter   2,470
Total   $7,759
FINANCIAL INSTRUMENTS (Tables)
Summary of the amounts recognized in the (gain) loss on derivative financial instruments line item of the consolidated statements of income (loss) and comprehensive income (loss)

 

    Year Ended December 31,    
   
 
   2013
   2012
   2011
    
   
Premiums realized on written foreign exchange call options   $3,375   $1,505   $4,995    
Realized loss on foreign exchange forwards   –   –   (1,407 )  
Realized gain on zinc derivative financial instruments   60   430   3,419    
Realized gain on copper derivative financial instruments   –   63   79    
Realized loss on silver derivative financial instruments   –   –   (3,403 )  
Mark-to-market gain on derivative equity contracts(i)   1,389   –   –    
Mark-to-market loss on warrants(i)   (488 ) (1,294 ) –    
Realized loss on warrants   (2,827 ) –   –    
Realized loss on heating oil derivative financial instruments   –   (1,523 ) –    
Gain (loss) on derivative financial instruments   $1,509   $(819 ) $3,683    

Note:

(i)
Mark-to-market gains and losses on financial instruments that did not qualify for hedge accounting are recognized through the (gain) loss on derivative financial instruments line item of the consolidated statements of income (loss) and comprehensive income (loss) and through the other line item of the consolidated statements of cash flow.
LOSS ON GOLDEX MINE (Tables)
Schedule of loss on Goldex Mine

 

Impairment loss on Goldex mine property, plant, and mine development   $ 237,110
Loss on underground ore stockpile     16,641
Supplies inventory obsolescence provision     1,915
Increase in environmental remediation liability     47,227
Loss on Goldex mine (before income and mining taxes) for the year ended December 31, 2011   $ 302,893
IMPAIRMENT LOSS (Tables)
Schedule of impairment losses
    As at December 31, 2013    
   
 
   Pre-impairment
Carrying Value
   Impairment
Loss
   Post-impairment
Carrying Value
   Impairment Loss
(net of tax)
    
   
Property, plant and mine development:                    
  Meadowbank mine   $732,499   $(269,269 ) $463,230   $(194,511 )  
  Lapa mine   136,766   (67,894 ) 68,872   (41,687 )  
    $869,265   $(337,163 ) $532,102   $(236,198 )  

Goodwill:
 
 
 
 
 
 
 
 
 
 
  Meliadine project   $200,064   $(200,064 ) $–   $(200,064 )  
        $(537,227 )     $(436,262 )  

 

    As at December 31, 2011    
   
 
   Pre-impairment
Carrying Value
   Impairment
Loss
   Post-impairment
Carrying Value
   Impairment Loss
(net of tax)
    
   
Property, plant and mine development:                    
  Meadowbank mine   $1,670,838   $(907,681 ) $763,157   $(644,903 )  
SEGMENTED INFORMATION (Tables)
Segment reporting information 

 

Northern Business:   LaRonde mine, Lapa mine, Goldex mine, Meadowbank mine, Meliadine project and Kittila mine
Southern Business:   Pinos Altos mine, Creston Mascota deposit at Pinos Altos and La India project
Exploration:   United States Exploration office, Europe Exploration office, Canada Exploration offices and Latin America Exploration office
Segment revenue and assets by geographical area 

 

Year ended
December 31, 2013
   Revenues
from Mining
Operations
   Production
Costs
   Exploration
and Corporate
Development
   Impairment
Loss
   Segment
Income
(Loss)
  
  
Northern Business:                                
LaRonde mine   $ 329,900   $ (229,911 ) $ —   $ —   $ 99,989  
Lapa mine     141,167     (69,532 )   —     (67,894 )   3,741  
Goldex mine     21,418     (13,172 )   —     —     8,246  
Meadowbank mine     591,473     (363,894 )   —     (269,269 )   (41,690 )
Meliadine project     —     —     —     (200,064 )   (200,064 )
Kittila mine     209,723     (98,446 )   —     —     111,277  
  
Total Northern Business   $ 1,293,681   $ (774,955 ) $ —   $ (537,227 ) $ (18,501 )
  

Southern Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pinos Altos mine   $ 303,203   $ (130,129 ) $ —   $ —   $ 173,074  
Creston Mascota deposit at Pinos Altos     41,522     (19,843 )   —     —     21,679  
  
Total Southern Business   $ 344,725   $ (149,972 ) $ —   $ —   $ 194,753  
  
Exploration   $ —   $ —   $ (44,236 ) $ —   $ (44,236 )
  
Segment income (loss)   $ 1,638,406   $ (924,927 ) $ (44,236 ) $ (537,227 ) $ 132,016  
  
 
Segment income   $ 132,016  
  
Corporate and other:        
  
  Foreign currency translation gain     7,188  
  
  Amortization of property, plant and mine development     (296,078 )
  
  Interest and sundry expense     (8,824 )
  
  Gain on sale of available-for-sale securities     74  
  
  Gain on derivative financial instruments     1,509  
  
  General and administrative     (115,800 )
  
  Impairment loss on available-for-sale securities     (34,272 )
  
  Provincial capital tax     1,504  
  
  Interest expense     (57,999 )
  
Loss before income and mining taxes   $ (370,682 )
  
 
Year ended
December 31, 2012
   Revenues
from Mining
Operations
   Production
Costs
   Exploration
and Corporate
Development
   Segment
Income
(Loss)
  
  
Northern Business:                          
LaRonde mine   $ 399,243   $ (225,647 ) $ —   $ 173,596  
Lapa mine     173,753     (73,376 )   —     100,377  
Goldex mine     —     —     (37,627 )   (37,627 )
Meadowbank mine     609,625     (347,710 )   —     261,915  
Kittila mine     284,429     (98,037 )   —     186,392  
  
Total Northern Business   $ 1,467,050   $ (744,770 ) $ (37,627 ) $ 684,653  
  

Southern Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
Pinos Altos mine   $ 363,113   $ (128,618 ) $ —   $ 234,495  
Creston Mascota deposit at Pinos Altos     87,551     (24,324 )   —     63,227  
  
Total Southern Business   $ 450,664   $ (152,942 ) $ —   $ 297,722  
  
Exploration   $ —   $ —   $ (71,873 ) $ (71,873 )
  
Segment income (loss)   $ 1,917,714   $ (897,712 ) $ (109,500 ) $ 910,502  
  
 
Segment income   $ 910,502  
  
Corporate and other:        
  
  Foreign currency translation loss     (16,320 )
  
  Amortization of property, plant and mine development     (271,861 )
  
  Interest and sundry expense     (2,389 )
  
  Gain on sale of available-for-sale securities     9,733  
  
  Loss on derivative financial instruments     (819 )
  
  General and administrative     (119,085 )
  
  Impairment loss on available-for-sale securities     (12,732 )
  
  Provincial capital tax     (4,001 )
  
  Interest expense     (57,887 )
  
Income before income and mining taxes   $ 435,141  
  
 
Year ended
December 31, 2011
 Revenues
from Mining
Operations
   Production
Costs
   Exploration
and Corporate
Development
   Loss on
Goldex
Mine
   Impairment
Loss
   Segment
(Loss)
Income
  
  
Northern Business:                                    
LaRonde mine $ 398,609   $ (209,947 ) $ —   $ —   $ —   $ 188,662  
Lapa mine   167,536     (68,599 )   —     —     —     98,937  
Goldex mine   217,662     (56,939 )   —     (302,893 )   —     (142,170 )
Meadowbank mine   434,051     (284,502 )   —     —     (907,681 )   (758,132 )
Kittila mine   225,612     (110,477 )   —     —     —     115,135  
  
Total Northern Business $ 1,443,470   $ (730,464 ) $ —   $ (302,893 ) $ (907,681 ) $ (497,568 )
  

Southern Business:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pinos Altos mine $ 321,074   $ (131,044 ) $ —   $ —   $ —   $ 190,030  
Creston Mascota deposit at Pinos Altos   57,255     (14,570 )   —                 42,685  
  
Total Southern Business $ 378,329   $ (145,614 ) $ —   $ —   $ —   $ 232,715  
  
Exploration $ —   $ —   $ (75,721 ) $ —   $ —   $ (75,721 )
  
Segment income (loss) $ 1,821,799   $ (876,078 ) $ (75,721 ) $ (302,893 ) $ (907,681 ) $ (340,574 )
  
 
Segment loss   $ (340,574 )
  
Corporate and other:        
  
  Foreign currency translation gain     1,082  
  
  Amortization of property, plant and mine development     (261,781 )
  
  Interest and sundry expense     (5,188 )
  
  Gain on sale of available-for-sale securities     4,907  
  
  Gain on derivative financial instruments     3,683  
  
  General and administrative     (107,926 )
  
  Impairment loss on available-for-sale securities     (8,569 )
  
  Provincial capital tax     (9,223 )
  
  Interest expense     (55,039 )
  
Loss before income and mining taxes   $ (778,628 )
  
 
      Total Assets as at December 31,
   
 
   2013
   2012
   
Northern Business:            
LaRonde mine   $ 878,719   $ 849,304
Lapa mine     78,293     168,712
Goldex mine     120,601     56,819
Meadowbank mine     711,387     1,005,890
Meliadine project     877,923     1,015,485
Kittila mine     870,332     837,002
Total Northern Business   $ 3,537,255   $ 3,933,212

Southern Business:
 
 
 
 
 
 
Pinos Altos mine   $ 537,560   $ 610,217
Creston Mascota deposit at Pinos Altos     86,185     68,735
La India project     512,450     377,049
Total Southern Business     1,136,195     1,056,001
Exploration     19,838     19,225
Corporate and other     266,071     247,681
Total   $ 4,959,359   $ 5,256,119
 
Schedule of capital expenditures 
      Capital Expenditures
Year Ended December 31,
   
 
   2013
   2012
   2011
   
Northern Business:                  
LaRonde mine   $ 84,292   $ 75,214   $ 90,735
Lapa mine     22,738     18,475     18,397
Goldex mine     65,063     26,822     42,232
Meadowbank mine     76,811     105,095     116,860
Meliadine project     61,412     83,343     73,944
Kittila mine     83,770     60,036     86,514
Total Northern Business   $ 394,086   $ 368,985   $ 428,682

Southern Business:
 
 
 
 
 
 
 
 
 
Pinos Altos mine   $ 42,835   $ 24,212   $ 32,407
Creston Mascota deposit at Pinos Altos     17,582     5,777     7,559
La India project     116,786     39,236     —
Total Southern Business   $ 177,203   $ 69,225   $ 39,966
Exploration   $ —   $ 55   $ 8,561
Corporate and other   $ 6,500   $ 7,285   $ 5,622
Total   $ 577,789   $ 445,550   $ 482,831
Schedule of changes in the carrying amount of goodwill by segment 

 

 
   Meliadine project
   La India project
   Corporate
and other
   Total
  
   
 
Cost                          
  
Balance at January 1, 2013   $ 200,064   $ 29,215   $ –   $ 229,279  
  
Purchase of Urastar Gold Corporation (note 10)     –     –     9,802     9,802  
  
Balance at December 31, 2013   $ 200,064   $ 29,215   $ 9,802   $ 239,081  
  

Accumulated impairment
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Balance at January 1, 2013   $ –   $ –   $ –   $ –  
  
Impairment loss     (200,064 )   –     –     (200,064 )
  
Balance at December 31, 2013   $ (200,064 ) $ –   $ –   $ (200,064 )
  
                           
  
Carrying amount   $ –   $ 29,215   $ 9,802   $ 39,017  
  
TRADE RECEIVABLES AND REVENUES FROM MINING OPERATIONS (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Product Information
 
 
 
Revenue from mining operation
$ 1,638,406,000 
$ 1,917,714,000 
$ 1,821,799,000 
Gold
 
 
 
Product Information
 
 
 
Revenue from mining operation
1,500,354,000 
1,712,665,000 
1,563,760,000 
Silver
 
 
 
Product Information
 
 
 
Revenue from mining operation
100,895,000 
140,221,000 
171,725,000 
Zinc
 
 
 
Product Information
 
 
 
Revenue from mining operation
16,685,000 
45,797,000 
70,522,000 
Percentage of revenue from byproduct metals to total revenue from mining operations
1.00% 
2.00% 
4.00% 
Copper
 
 
 
Product Information
 
 
 
Revenue from mining operation
20,653,000 
19,019,000 
14,451,000 
Percentage of revenue from byproduct metals to total revenue from mining operations
1.00% 
1.00% 
1.00% 
Lead
 
 
 
Product Information
 
 
 
Revenue from mining operation
(181,000)
12,000 
1,341,000 
Revenue that is nettled against concentrate direct fees
900,000 
 
 
Concentrate direct fees
$ 1,100,000 
 
 
Gold & Silver
 
 
 
Product Information
 
 
 
Percentage of revenue from precious metal to total revenue from mining operations
98.00% 
97.00% 
95.00% 
OTHER ASSETS (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Other current assets
 
 
 
Federal, provincial and other sales taxes receivable
$ 71,053,000 
$ 36,400,000 
 
Prepaid expenses
35,396,000 
36,119,000 
 
Insurance receivable
1,369,000 
6,553,000 
 
Receivables from employees
780,000 
1,800,000 
 
Retirement compensation arrangement plan refundable tax receivable
 
4,044,000 
 
Other
8,395,000 
8,061,000 
 
Other current assets, total
116,993,000 
92,977,000 
 
Schedule of Available-for-sale Securities
 
 
 
Proceeds from available-for-sale securities
200,000 
73,400,000 
9,400,000 
Gain on sale of available-for-sale securities
100,000 
9,700,000 
4,900,000 
Estimated fair value
74,581,000 
44,719,000 
 
Other than temporary impairment loss on available-for-sale securities
34,272,000 
12,732,000 
8,569,000 
Other assets
 
 
 
Deferred financing costs, less accumulated amortization
12,644,000 
15,836,000 
 
Accumulated amortization of non-current deferred financing costs
11,420,000 
8,888,000 
 
Other
7,559,000 
7,291,000 
 
Other assets non-current
66,394,000 
55,838,000 
 
Long-term ore in stockpile
46,191,000 
32,711,000 
 
Pinos Altos mine
 
 
 
Other assets
 
 
 
Long-term ore in stockpile
2,500,000 
4,100,000 
 
Creston Mascota deposit at Pinos Altos
 
 
 
Other assets
 
 
 
Long-term ore in stockpile
8,200,000 
10,700,000 
 
Kittila mine
 
 
 
Other assets
 
 
 
Long-term ore in stockpile
26,700,000 
7,700,000 
 
Meadowbank mine
 
 
 
Other assets
 
 
 
Long-term ore in stockpile
7,800,000 
10,200,000 
 
La India project
 
 
 
Other assets
 
 
 
Long-term ore in stockpile
1,000,000 
   
 
Available-for-sale securities in an unrealized gain position
 
 
 
Schedule of Available-for-sale Securities
 
 
 
Cost (net of impairments)
30,583,000 
4,352,000 
 
Unrealized gains (losses) in accumulated other comprehensive loss
11,530,000 
1,902,000 
 
Estimated fair value
42,113,000 
6,254,000 
 
Available-for-sale securities in an unrealized loss position
 
 
 
Schedule of Available-for-sale Securities
 
 
 
Cost (net of impairments)
39,933,000 
48,047,000 
 
Unrealized gains (losses) in accumulated other comprehensive loss
(7,465,000)
(9,582,000)
 
Estimated fair value
32,468,000 
38,465,000 
 
Other than temporary impairment loss on available-for-sale securities
$ 34,300,000 
$ 12,700,000 
$ 8,600,000 
Maximum duration of impairment for investments in available-for-sale securities
3 months 
 
 
PROPERTY, PLANT AND MINE DEVELOPMENT (Details) (USD $)
12 Months Ended
Dec. 31, 2013
item
Dec. 31, 2012
Property, Plant and Mine Development
 
 
Cost
$ 5,041,109,000 
$ 5,010,088,000 
Accumulated Amortization
991,992,000 
942,632,000 
Net Book Value
4,049,117,000 
4,067,456,000 
Capitalized costs of computer software
2,500,000 
1,300,000 
Amortization expense of computer software
1,400,000 
1,200,000 
Unamortized capitalized cost of computer software
6,800,000 
5,700,000 
Unamortized capitalized cost for leasehold improvements
3,300,000 
3,400,000 
Number of renewal periods after life of the lease that leasehold improvements are amortized over
1 
 
Canada
 
 
Property, Plant and Mine Development
 
 
Net Book Value
2,312,166,000 
2,543,171,000 
United States
 
 
Property, Plant and Mine Development
 
 
Net Book Value
10,269,000 
10,698,000 
Finland
 
 
Property, Plant and Mine Development
 
 
Net Book Value
763,711,000 
704,031,000 
Mexico
 
 
Property, Plant and Mine Development
 
 
Net Book Value
962,971,000 
809,556,000 
Mining properties
 
 
Property, Plant and Mine Development
 
 
Cost
1,361,867,000 
1,356,227,000 
Accumulated Amortization
89,700,000 
86,839,000 
Net Book Value
1,272,167,000 
1,269,388,000 
Plant and equipment
 
 
Property, Plant and Mine Development
 
 
Cost
2,286,887,000 
2,538,328,000 
Accumulated Amortization
662,394,000 
617,826,000 
Net Book Value
1,624,493,000 
1,920,502,000 
Mine development costs
 
 
Property, Plant and Mine Development
 
 
Cost
1,038,564,000 
918,482,000 
Accumulated Amortization
239,898,000 
237,967,000 
Net Book Value
798,666,000 
680,515,000 
Meliadine project
 
 
Property, Plant and Mine Development
 
 
Cost
192,413,000 
133,840,000 
Net Book Value
192,413,000 
133,840,000 
La India project
 
 
Property, Plant and Mine Development
 
 
Cost
161,378,000 
32,553,000 
Net Book Value
161,378,000 
32,553,000 
Goldex mine M and E zones
 
 
Property, Plant and Mine Development
 
 
Cost
 
30,658,000 
Net Book Value
 
$ 30,658,000 
FAIR VALUE MEASUREMENT (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Other disclosure
 
 
 
Impairment losses related to property, plant and mine development and goodwill (net of tax)
$ 436,300,000 
    
$ 644,900,000 
Fair value measured on recurring basis |
Level 1
 
 
 
Financial assets:
 
 
 
Available-for-sale securities
74,581,000 
44,719,000 
 
Total financial assets
74,581,000 
44,719,000 
 
Fair value measured on recurring basis |
Level 2
 
 
 
Financial assets:
 
 
 
Trade receivables
67,300,000 
67,750,000 
 
Fair value of derivative financial instruments
5,590,000 
2,112,000 
 
Total financial assets
72,890,000 
69,862,000 
 
Financial liabilities:
 
 
 
Fair value of derivative financial instruments
467,000 
277,000 
 
Fair value measured on recurring basis |
Total
 
 
 
Financial assets:
 
 
 
Trade receivables
67,300,000 
67,750,000 
 
Available-for-sale securities
74,581,000 
44,719,000 
 
Fair value of derivative financial instruments
5,590,000 
2,112,000 
 
Total financial assets
147,471,000 
114,581,000 
 
Financial liabilities:
 
 
 
Fair value of derivative financial instruments
$ 467,000 
$ 277,000 
 
LONG-TERM DEBT (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 0 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Jun. 22, 2010
Credit Facilities
item
Dec. 31, 2013
Credit Facilities
Dec. 31, 2012
Credit Facilities
Dec. 31, 2011
Credit Facilities
Dec. 31, 2013
Guaranteed senior unsecured notes
Dec. 31, 2012
Guaranteed senior unsecured notes
Dec. 31, 2011
Guaranteed senior unsecured notes
Dec. 31, 2013
2012 Notes
Jul. 24, 2012
2012 Notes
Jul. 24, 2012
Series A maturing in 2022
Jul. 24, 2012
Series B maturing in 2024
Dec. 31, 2013
2010 Notes
Apr. 7, 2010
2010 Notes
Apr. 7, 2010
Series A maturing in 2017
Apr. 7, 2010
Series B maturing in 2020
Apr. 7, 2010
Series C maturing in 2022
Debt instrument
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of credit facilities
 
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum borrowing capacity of line of credit
 
 
 
$ 900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount available under credit facilities after amendment
 
 
 
1,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount drawn down on the credit facility
 
 
 
 
200,000,000 
30,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Availability under credit facility
 
 
 
 
998,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding notes
 
 
 
 
 
 
 
 
 
 
200,000,000 
200,000,000 
 
 
600,000,000 
600,000,000 
 
 
 
Proceeds from private placement of guaranteed senior unsecured notes
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
100,000,000 
 
 
115,000,000 
360,000,000 
125,000,000 
Interest rate (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
4.87% 
5.02% 
 
 
6.13% 
6.67% 
6.77% 
Weighted average maturity term on guaranteed senior unsecured notes
 
 
 
 
 
 
 
 
 
 
 
11 years 
 
 
 
9 years 10 months 2 days 
 
 
 
Guaranteed senior unsecured notes, weighted average yield (as a percent)
 
 
 
 
 
 
 
 
 
 
 
4.95% 
 
 
 
6.59% 
 
 
 
Interest expense
57,999,000 
57,887,000 
55,039,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash interest payments
58,152,000 
52,213,000 
52,833,000 
 
1,800,000 
3,600,000 
1,700,000 
49,400,000 
39,500,000 
39,500,000 
 
 
 
 
 
 
 
 
 
Cash standby fees
 
 
 
 
4,800,000 
4,200,000 
8,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expenditures capitalized to construction property, plant and mine development
$ 3,500,000 
$ 1,500,000 
$ 1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate (as a percent)
5.37% 
6.02% 
5.02% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECLAMATION PROVISION AND OTHER LIABILITIES (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
RECLAMATION PROVISION AND OTHER LIABILITIES
 
 
Reclamation provision (note 6(a))
$ 150,849 
$ 101,753 
Long-term portion of capital lease obligations (note 13(a))
11,843 
12,108 
Pension benefits (note 6(b))
15,278 
13,734 
Other
266 
140 
Total
$ 178,236 
$ 127,735 
RECLAMATION PROVISION AND OTHER LIABILITIES (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Reclamation provisions
 
 
Asset retirement obligations, long-term, beginning of year
$ 89,720 
$ 86,386 
Asset retirement obligations - current, beginning of year
4,630 
 
Current year additions and changes in estimate, net
44,898 
1,495 
Current year accretion
4,624 
5,068 
Liabilities settled
(853)
(254)
Foreign exchange revaluation
(3,678)
1,655 
Reclassification from long-term to current, end of year
(1,029)
(4,630)
Asset retirement obligations - long-term, end of year
138,312 
89,720 
Goldex mine
 
 
Environmental remediation liability
 
 
Environmental remediation liability - long-term, beginning of year
12,033 
19,057 
Environmental remediation liability - current, beginning of year
12,186 
26,069 
Current year additions and changes in estimate, net
1,005 
(36)
Liabilities settled
(9,045)
(21,450)
Foreign exchange revaluation
(1,219)
579 
Reclassification from long-term to current
(2,423)
(12,186)
Environmental remediation liability - long-term, end of year
$ 12,537 
$ 12,033 
RECLAMATION PROVISION AND OTHER LIABILITIES (Details 3) (Executives Plan, USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Executives Plan
 
 
 
Components of net pension benefits expense
 
 
 
Service cost - benefits earned during the year
$ 457,000 
$ 650,000 
$ 996,000 
Interest cost on projected benefit obligation
431,000 
489,000 
663,000 
Amortization of net transition asset
164,000 
169,000 
171,000 
Prior service cost
25,000 
26,000 
26,000 
Loss due to settlement
 
2,921,000 
 
Recognized net actuarial loss
379,000 
340,000 
245,000 
Net pension benefits expense
1,456,000 
4,595,000 
2,101,000 
Accumulated benefit obligation
9,600,000 
9,700,000 
 
Reconciliation of the market value of plan assets:
 
 
 
Fair value of plan assets, beginning of year
2,373,000 
2,952,000 
 
Agnico Eagle's contribution
374,000 
839,000 
 
Benefit payments
(244,000)
(520,000)
 
Settlements
 
(961,000)
 
Effect of exchange rate changes
(157,000)
63,000 
 
Fair value of plan assets, end of year
2,346,000 
2,373,000 
2,952,000 
Reconciliation of projected benefit obligation:
 
 
 
Projected benefit obligation, beginning of year
10,818,000 
14,370,000 
 
Service cost
456,000 
650,000 
 
Interest cost
431,000 
489,000 
 
Net actuarial losses
573,000 
675,000 
 
Benefit payments
(244,000)
(520,000)
 
Settlements
 
(5,148,000)
 
Effect of exchange rate changes
(736,000)
302,000 
 
Projected benefit obligation, end of year
11,298,000 
10,818,000 
14,370,000 
Deficiency of plan assets compared with projected benefit obligation
(8,952,000)
(8,445,000)
 
Comprised of the following net amounts recognized in the consolidated balance sheets :
 
 
 
Accrued employee benefit liability
5,733,000 
5,008,000 
 
Accumulated other comprehensive loss
 
 
 
Transition obligation
159,000 
341,000 
 
Prior service cost
24,000 
52,000 
 
Net actuarial loss
3,036,000 
3,044,000 
 
Net liability
8,952,000 
8,445,000 
 
Assumptions:
 
 
 
Weighted average discount rate - net periodic pension cost (as a percent)
4.00% 
4.45% 
 
Weighted average discount rate - projected benefit obligation (as a percent)
4.90% 
4.00% 
 
Weighted average rate of compensation increase (as a percent)
3.00% 
3.00% 
 
Estimated average remaining service life for the plan
5 years 
6 years 
 
Components expected to be recognized in accumulated other comprehensive loss in 2014:
 
 
 
Transition obligation
159,000 
 
 
Prior service cost
24,000 
 
 
Net actuarial loss
476,000 
 
 
Expected recognition in 2014 of amounts in accumulated other comprehensive income (loss)
659,000 
 
 
Estimated future benefit payments from the plan
 
 
 
2014
109,000 
 
 
2015
107,000 
 
 
2016
105,000 
 
 
2017
103,000 
 
 
2018
102,000 
 
 
2019 - 2023
$ 5,295,000 
 
 
RECLAMATION PROVISION AND OTHER LIABILITIES (Details 4) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Basic defined contribution pension plan
 
 
 
Defined contribution plan
 
 
 
Employer contribution to defined contribution plan, percentage of base employment compensation
5.00% 
 
 
Defined contribution pension plan amount contributed
$ 12.5 
$ 11.9 
$ 10.7 
Supplemental defined contribution pension plan
 
 
 
Defined contribution plan
 
 
 
Additional contribution by employer to defined contribution plan (as a percent)
10.00% 
 
 
Defined contribution pension plan amount contributed
$ 1.2 
$ 0.8 
$ 0.9 
SHAREHOLDERS' EQUITY (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 12 Months Ended
Dec. 3, 2008
warrantsperequityunit
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
SHAREHOLDERS' EQUITY
 
 
 
 
Issued common shares including treasury shares
 
174,181,163 
172,296,610 
 
Treasury shares related to restricted share unit plan
 
227,188 
193,740 
 
Dividends declared (in dollars per share)
 
$ 0.66 
$ 1.02 
    
Units issued in private placement (in units)
9,200,000 
 
 
 
Common shares included in each unit of private placement
1 
 
 
 
Common share purchase warrants included in each unit of private placement
0.5 
 
 
 
Warrant exercise price (in dollars per share)
$ 47.25 
 
 
 
Warrant exercise period
5 years 
 
 
 
Additional warrants issued as consideration for the lead purchaser's commitment (in shares)
4,000,000 
 
 
 
Net proceeds from private placement (in dollars)
$ 281.0 
 
 
 
Share issuance costs (in dollars)
$ 8.8 
 
 
 
SHAREHOLDERS' EQUITY (Details 2) (Grayd, USD $)
In Thousands, except Share data, unless otherwise specified
0 Months Ended
Jan. 23, 2012
Nov. 18, 2011
Grayd
 
 
Business and Properties Acquisition
 
 
Number of shares issued for acquisition of mining claims and properties
68,941 
1,250,477 
Newly issued Agnico Eagle shares value
$ 2,400 
$ 56,146 
Percentage of outstanding shares acquired
5.23% 
94.77% 
SHAREHOLDERS' EQUITY (Details 3) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Changes in accumulated other comprehensive loss by component
 
 
 
Accumulated other comprehensive (loss) income, beginning of period
$ (27,311)
$ (7,106)
 
Unrealized other comprehensive (loss) gain
(22,462)
(19,616)
 
Income tax expense (recovery) impact
51 
(2,025)
 
Reclassifications from accumulated other comprehensive (loss) income to the Consolidated Statements of Income (Loss)
34,718 
878 
 
Income tax expense (recovery) impact
(137)
558 
 
Other comprehensive income (loss) for the year
12,170 
(20,205)
(35,496)
Accumulated other comprehensive (loss) income, end of period
(15,141)
(27,311)
(7,106)
Cumulative Translation Adjustment
 
 
 
Changes in accumulated other comprehensive loss by component
 
 
 
Accumulated other comprehensive (loss) income, end of period
(16,206)
(16,206)
(16,206)
Available-for-sale Securities and Other Investments
 
 
 
Changes in accumulated other comprehensive loss by component
 
 
 
Accumulated other comprehensive (loss) income, beginning of period
(7,680)
16,350 
 
Unrealized other comprehensive (loss) gain
(22,553)
(27,029)
 
Reclassifications from accumulated other comprehensive (loss) income to the Consolidated Statements of Income (Loss)
34,198 
2,999 
 
Other comprehensive income (loss) for the year
11,645 
(24,030)
 
Accumulated other comprehensive (loss) income, end of period
3,965 
(7,680)
 
Derivative Financial Instruments
 
 
 
Changes in accumulated other comprehensive loss by component
 
 
 
Accumulated other comprehensive (loss) income, beginning of period
72 
(2,913)
 
Unrealized other comprehensive (loss) gain
(284)
6,882 
 
Income tax expense (recovery) impact
150 
(1,885)
 
Reclassifications from accumulated other comprehensive (loss) income to the Consolidated Statements of Income (Loss)
(117)
(2,738)
 
Income tax expense (recovery) impact
31 
721 
 
Other comprehensive income (loss) for the year
(220)
2,985 
 
Accumulated other comprehensive (loss) income, end of period
(148)
72 
 
Pension Benefits
 
 
 
Changes in accumulated other comprehensive loss by component
 
 
 
Accumulated other comprehensive (loss) income, beginning of period
(3,497)
(4,337)
 
Unrealized other comprehensive (loss) gain
375 
531 
 
Income tax expense (recovery) impact
(99)
(140)
 
Reclassifications from accumulated other comprehensive (loss) income to the Consolidated Statements of Income (Loss)
637 
617 
 
Income tax expense (recovery) impact
(168)
(163)
 
Other comprehensive income (loss) for the year
745 
840 
 
Accumulated other comprehensive (loss) income, end of period
$ (2,752)
$ (3,497)
 
SHAREHOLDERS' EQUITY (Details 4)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net income (loss) per share
 
 
 
Weighted average number of common shares outstanding - basic (in shares)
172,892,654 
171,250,179 
169,352,896 
Dilutive impact of shares related to RSU plan (in shares)
 
235,436 
 
Weighted average number of common shares outstanding - diluted (in shares)
172,892,654 
171,485,615 
169,352,896 
Anti-dilutive shares
 
 
 
Employee stock options excluded from the computation of diluted weighted average common shares (in shares)
 
7,742,151 
 
STOCK-BASED COMPENSATION (Details)
In Millions, except Share data, unless otherwise specified
12 Months Ended 0 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2013
Employee Stock Option Plan
USD ($)
Dec. 31, 2013
Employee Stock Option Plan
CAD ($)
Dec. 31, 2012
Employee Stock Option Plan
USD ($)
Dec. 31, 2012
Employee Stock Option Plan
CAD ($)
Dec. 31, 2011
Employee Stock Option Plan
USD ($)
Dec. 31, 2011
Employee Stock Option Plan
CAD ($)
Jan. 2, 2014
Employee Stock Option Plan
Subsequent Event
May 31, 2005
Incentive Share Purchase Plan
Dec. 31, 2013
Incentive Share Purchase Plan
USD ($)
Dec. 31, 2012
Incentive Share Purchase Plan
USD ($)
Dec. 31, 2011
Incentive Share Purchase Plan
USD ($)
May 31, 2008
Incentive Share Purchase Plan
Dec. 31, 2013
Restricted Share Unit Plan
USD ($)
Dec. 31, 2012
Restricted Share Unit Plan
USD ($)
Dec. 31, 2011
Restricted Share Unit Plan
USD ($)
Share-based compensation arrangements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum percentage of shares subject to options as a percentage of company's common shares issued and outstanding
5.00% 
5.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum term of options granted after April 24, 2001 under ESOP
5 years 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares reserved for issuance before increase in the number of shares approved
 
 
 
 
 
 
 
2,500,000 
 
 
 
 
 
 
 
Additional number of shares reserved for issuance
2,000,000 
2,000,000 
2,500,000 
2,500,000 
3,000,000 
3,000,000 
 
 
 
 
 
 
 
 
 
Common shares reserved for issuance, authorized
 
 
 
 
23,300,000 
23,300,000 
 
 
 
 
 
5,000,000 
 
 
 
Common shares reserved for issuance
11,283,535 
11,283,535 
 
 
 
 
 
 
829,907 
1,642,853 
2,150,088 
 
 
 
 
Stock options granted (in shares)
2,803,000 
2,803,000 
3,257,000 
3,257,000 
2,630,785 
2,630,785 
3,177,500 
 
 
 
 
 
 
 
 
Stock options vested (in shares)
700,750 
700,750 
814,250 
814,250 
657,696 
657,696 
794,375 
 
 
 
 
 
 
 
 
Stock options vesting period that are not vested immediately
3 years 
3 years 
3 years 
3 years 
3 years 
3 years 
3 years 
 
 
 
 
 
 
 
 
Stock options activity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options outstanding, beginning of period (in shares)
10,587,126 
10,587,126 
8,959,051 
8,959,051 
6,762,704 
6,762,704 
 
 
 
 
 
 
 
 
 
Granted (in shares)
2,803,000 
2,803,000 
3,257,000 
3,257,000 
2,630,785 
2,630,785 
3,177,500 
 
 
 
 
 
 
 
 
Exercised (in shares)
(213,500)
(213,500)
(416,275)
(416,275)
(308,688)
(308,688)
 
 
 
 
 
 
 
 
 
Forfeited (in shares)
(540,206)
(540,206)
(731,000)
(731,000)
(125,750)
(125,750)
 
 
 
 
 
 
 
 
 
Expired (in shares)
(1,352,885)
(1,352,885)
(481,650)
(481,650)
 
 
 
 
 
 
 
 
 
 
 
Options outstanding, end of period (in shares)
11,283,535 
11,283,535 
10,587,126 
10,587,126 
8,959,051 
8,959,051 
 
 
 
 
 
 
 
 
 
Options exercisable at end of period (in shares)
7,248,295 
7,248,295 
6,510,464 
6,510,464 
5,178,172 
5,178,172 
 
 
 
 
 
 
 
 
 
Weighted Average Exercise Price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, beginning of period, weighted average exercise price (in Canadian dollars per share)
 
$ 56.60 
 
$ 62.88 
 
$ 56.94 
 
 
 
 
 
 
 
 
 
Granted, weighted average exercise price (in Canadian dollars per share)
 
$ 52.13 
 
$ 36.99 
 
$ 76.12 
 
 
 
 
 
 
 
 
 
Exercised, weighted average exercise price (in Canadian dollars per share)
 
$ 37.06 
 
$ 43.51 
 
$ 43.62 
 
 
 
 
 
 
 
 
 
Forfeited, weighted average exercise price (in Canadian dollars per share)
 
$ 58.15 
 
$ 59.72 
 
$ 67.47 
 
 
 
 
 
 
 
 
 
Expired - weighted-average exercise price (in Canadian dollars per share)
 
$ 54.67 
 
$ 47.49 
 
 
 
 
 
 
 
 
 
 
 
Outstanding, end of period, weighted average exercise price (in Canadian dollars per share)
 
$ 56.02 
 
$ 56.60 
 
$ 62.88 
 
 
 
 
 
 
 
 
 
Nonvested Stock Options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-vested, beginning of year (in shares)
4,076,662 
4,076,662 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted (in shares)
2,803,000 
2,803,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested (in shares)
(2,661,216)
(2,661,216)
 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited (non-vested) (in shares)
(183,206)
(183,206)
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-vested, end of year (in shares)
4,035,240 
4,035,240 
4,076,662 
4,076,662 
 
 
 
 
 
 
 
 
 
 
 
Weighted Average Grant Date Fair Value - Non-Vested Stock Options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-vested, beginning of year (in Canadian dollars per share)
 
$ 13.33 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted (in Canadian dollars per share)
 
$ 11.21 
 
$ 8.29 
 
$ 17.05 
 
 
 
 
 
 
 
 
 
Vested (in Canadian dollars per share)
 
$ 12.84 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited (unvested) (in Canadian dollars per share)
 
$ 11.38 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-vested, end of year (in Canadian dollars per share)
 
$ 11.44 
 
$ 13.33 
 
 
 
 
 
 
 
 
 
 
 
Cash received for options exercised
$ 8.0 
 
$ 18.2 
 
$ 13.6 
 
 
 
 
 
 
 
 
 
 
Total intrinsic value of options exercised
 
3.1 
 
3.6 
 
8.0 
 
 
 
 
 
 
 
 
 
Weighted average grant-date fair value of options granted (in Canadian dollars per share)
 
$ 11.21 
 
$ 8.29 
 
$ 17.05 
 
 
 
 
 
 
 
 
 
Total grant date fair value of options vested
34.2 
 
41.0 
 
46.7 
 
 
 
 
 
 
 
 
 
 
Contribution limit as a percentage of annual salary
 
 
 
 
 
 
 
 
10.00% 
 
 
 
 
 
 
Company match, as a percentage of employee contribution
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
Share-based compensation cost recognized
26.4 
 
33.8 
 
42.2 
 
 
 
7.8 
7.2 
6.4 
 
12.1 
6.6 
3.3 
Number of common shares subscribed under the Purchase Plan
 
 
 
 
 
 
 
 
812,946 
507,235 
360,833 
 
 
 
 
Value of common shares subscribed under the Purchase Plan
 
 
 
 
 
 
 
 
23.4 
21.7 
19.2 
 
 
 
 
Contribution by the company to employee benefit trust
 
 
 
 
 
 
 
 
 
 
 
 
$ 19.0 
$ 12.0 
$ 3.7 
STOCK-BASED COMPENSATION (Details 2)
In Millions, except Share data, unless otherwise specified
12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2013
Employee Stock Option Plan
USD ($)
Dec. 31, 2012
Employee Stock Option Plan
USD ($)
Dec. 31, 2011
Employee Stock Option Plan
USD ($)
Dec. 31, 2013
Employee Stock Option Plan
CAD ($)
Jan. 2, 2014
Restricted Share Unit Plan
Dec. 31, 2013
Restricted Share Unit Plan
USD ($)
Dec. 31, 2012
Restricted Share Unit Plan
USD ($)
Dec. 31, 2011
Restricted Share Unit Plan
USD ($)
Dec. 31, 2013
C$33.39 - C$59.71
Employee Stock Option Plan
CAD ($)
Dec. 31, 2013
C$60.72 - C$83.08
Employee Stock Option Plan
CAD ($)
Dec. 31, 2013
C$33.39 - C$83.08
Employee Stock Option Plan
CAD ($)
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range
 
 
 
 
 
 
 
 
 
 
 
Range of exercise price, low end of the range (in Canadian dollars per share)
 
 
 
 
 
 
 
 
$ 33.39 
$ 60.72 
$ 33.39 
Range of exercise price, high end of the range (in Canadian dollars per share)
 
 
 
 
 
 
 
 
$ 59.71 
$ 83.08 
$ 83.08 
Options Outstanding, Number (in shares)
 
 
 
 
 
 
 
 
7,341,556 
3,941,979 
11,283,535 
Options Outstanding, Weighted Average Remaining Contractual Life
 
 
 
 
 
 
 
 
2 years 9 months 22 days 
1 year 1 month 20 days 
2 years 2 months 23 days 
Options Outstanding, Weighted Average Exercise Price (in Canadian dollars per share)
 
 
 
 
 
 
 
 
$ 48.28 
$ 70.43 
$ 56.02 
Options Exercisable, Number (in shares)
 
 
 
 
 
 
 
 
3,851,056 
3,397,239 
7,248,295 
Options Exercisable, Weighted Average Exercise Price (in Canadian dollars per share)
 
 
 
 
 
 
 
 
$ 50.50 
$ 69.49 
$ 59.39 
Weighted average remaining contractual term of options exercisable
1 year 7 months 6 days 
 
 
 
 
 
 
 
 
 
 
Common shares reserved for issuance
11,283,535 
 
 
 
 
 
 
 
 
 
 
Number of un-optioned shares available for granting of options
4,807,876 
3,717,785 
3,262,135 
 
 
 
 
 
 
 
 
Granted (in shares)
 
 
 
 
293,041 
 
 
 
 
 
 
Fair value of options weighted average assumptions:
 
 
 
 
 
 
 
 
 
 
 
Pricing model used for valuation of options
Black-Scholes 
 
 
 
 
 
 
 
 
 
 
Risk-free interest rate (as a percent)
1.50% 
1.26% 
1.95% 
 
 
 
 
 
 
 
 
Expected life of stock options
2 years 7 months 6 days 
2 years 9 months 18 days 
2 years 6 months 
 
 
 
 
 
 
 
 
Expected volatility of the Company's share price (as a percent)
35.00% 
37.50% 
34.70% 
 
 
 
 
 
 
 
 
Expected dividend yield (as a percent)
1.82% 
2.14% 
0.89% 
 
 
 
 
 
 
 
 
Aggregate intrinsic value of options outstanding
 
 
 
   
 
 
 
 
 
 
 
Aggregate intrinsic value of options exercisable
 
 
 
   
 
 
 
 
 
 
 
The total compensation expense for the ESOP recognized in the general and administrative line item of the consolidated statements of income (loss) and comprehensive income (loss)
26.4 
33.8 
42.2 
 
 
12.1 
6.6 
3.3 
 
 
 
Total compensation cost related to nonvested options not yet recognized
21.2 
 
 
 
 
 
 
 
 
 
 
Weighted average period over which unrecognized compensation cost expected to be recognized
1 year 8 months 12 days 
 
 
 
 
 
 
 
 
 
 
Compensation cost capitalized as a part of the property, plant and mine development line item of the consolidated balance sheets
$ 3.3 
$ 1.3 
$ 1.4 
 
 
 
 
 
 
 
 
INCOME AND MINING TAXES (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Income and mining taxes expense (recovery)
 
 
 
Current income and mining taxes
$ 52,394,000 
$ 52,080,000 
$ 66,100,000 
Deferred income and mining taxes
(16,550,000)
72,145,000 
(275,773,000)
Total income and mining taxes
35,844,000 
124,225,000 
(209,673,000)
Cash income and mining taxes paid
56,500,000 
57,000,000 
110,900,000 
Reconciliation of income tax rates
 
 
 
Combined federal and composite provincial tax rates (as a percent)
26.30% 
26.30% 
27.80% 
Increase (decrease) in tax rates resulting from:
 
 
 
Provincial mining duties (as a percent)
1.40% 
3.60% 
5.90% 
Tax law changes (US$ election) (as a percent)
(13.60%)
 
(2.70%)
Impact of foreign tax rates (as a percent)
2.40% 
(1.50%)
(0.20%)
Permanent differences (as a percent)
(25.10%)
1.00% 
(1.60%)
Valuation allowances (as a percent)
(0.90%)
1.20% 
(0.30%)
Impact of changes in income tax rates (as a percent)
(0.20%)
(2.10%)
(2.00%)
Actual rate as a percentage of pre-tax income
(9.70%)
28.50% 
26.90% 
Deferred income and mining tax liabilities
 
 
 
Mining properties
808,449,000 
761,508,000 
 
Net operating and capital loss carryforwards
(129,019,000)
(102,005,000)
 
Mining duties
(68,728,000)
(36,158,000)
 
Reclamation provisions
(44,242,000)
(42,688,000)
 
Valuation allowance
26,860,000 
30,570,000 
 
Deferred income and mining tax liabilities
593,320,000 
611,227,000 
 
Reconciliation of the beginning and ending amount of unrecognized tax benefits
 
 
 
Unrecognized tax benefit, beginning of year
10,867,000 
1,200,000 
1,630,000 
Additions (reductions)
 
9,667,000 
(430,000)
Unrecognized tax benefit, end of year
10,867,000 
10,867,000 
1,200,000 
Canada
 
 
 
Income and mining taxes expense (recovery)
 
 
 
Current income and mining taxes
7,934,000 
8,750,000 
62,382,000 
Deferred income and mining taxes
(95,344,000)
26,041,000 
(341,038,000)
Mexico
 
 
 
Income and mining taxes expense (recovery)
 
 
 
Current income and mining taxes
29,968,000 
33,531,000 
3,496,000 
Deferred income and mining taxes
93,665,000 
25,284,000 
54,996,000 
Finland
 
 
 
Income and mining taxes expense (recovery)
 
 
 
Current income and mining taxes
14,492,000 
9,799,000 
222,000 
Deferred income and mining taxes
$ (14,871,000)
$ 20,820,000 
$ 10,269,000 
ACQUISITIONS (Details) (USD $)
0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended
Dec. 31, 2013
Dec. 31, 2012
May 16, 2013
Urastar
Dec. 31, 2013
Urastar
Dec. 31, 2012
Urastar
Jan. 23, 2012
Grayd
Nov. 18, 2011
Grayd
Dec. 31, 2011
Grayd
Dec. 20, 2011
Summit Gold Project
Total purchase price:
 
 
 
 
 
 
 
 
 
Cash paid for acquisition
 
 
$ 10,127,000 
 
 
$ 9,300,000 
$ 165,954,000 
 
$ 8,500,000 
Transaction costs associated with the acquisition
 
 
 
700,000 
 
 
 
3,800,000 
 
Percentage of outstanding shares acquired
 
 
 
 
 
 
94.77% 
 
100.00% 
Newly issued Agnico Eagle shares value
 
 
 
 
 
 
56,146,000 
 
 
Total purchase price to allocate
 
 
 
 
 
11,800,000 
222,100,000 
 
 
Agnico Eagle common shares issued for acquisition
 
 
 
 
 
68,941 
1,250,477 
 
 
Percentage of net smelter return production royalty the company has to pay
 
 
 
 
 
 
 
 
2.00% 
Fair value of assets acquired and liabilities assumed:
 
 
 
 
 
 
 
 
 
Mining properties
 
 
1,994,000 
 
 
 
282,000,000 
 
 
Goodwill
39,017,000 
229,279,000 
9,802,000 
 
 
 
29,215,000 
 
 
Cash and cash equivalents
 
 
76,000 
 
 
 
2,907,000 
 
 
Trade receivables
 
 
731,000 
 
 
 
469,000 
 
 
Other current assets
 
 
12,000 
 
 
 
1,700,000 
 
 
Plant and equipment
 
 
2,000 
 
 
 
56,000 
 
 
Accounts payable and accrued liabilities
 
 
(791,000)
 
 
 
(9,767,000)
 
 
Other liabilities
 
 
(1,573,000)
 
 
 
 
 
 
Deferred tax liability
 
 
(126,000)
 
 
 
(72,229,000)
 
 
Non-controlling interest
 
 
 
 
 
 
(12,251,000)
 
 
Net assets acquired
 
 
10,127,000 
 
 
 
222,100,000 
 
 
Pro forma results of operations
 
 
 
 
 
 
 
 
 
Pro forma net loss attributed to common shareholders
 
 
 
$ (409,020,000)
$ 307,274,000 
 
 
$ (582,762,000)
 
Pro forma net loss per share-basic (in dollars per share)
 
 
 
$ (2.37)
$ 1.79 
 
 
$ (3.42)
 
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2013
Dec. 31, 2012
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
 
 
Trade payables
$ 80,242 
$ 89,289 
Wages payable
35,881 
35,752 
Accrued liabilities
16,366 
27,372 
Other liabilities
40,885 
32,916 
Accounts payable and accrued liabilities
$ 173,374 
$ 185,329 
COMMITMENTS AND CONTINGENCIES (Details) (USD $)
Dec. 31, 2013
COMMITMENTS AND CONTINGENCIES
 
Guarantees provided in the form of letters of credit
$ 174,300,000 
Purchase commitments
 
2014
13,023,000 
2015
8,373,000 
2016
5,832,000 
2017
4,290,000 
2018
4,290,000 
Thereafter
7,272,000 
Total
$ 43,080,000 
Pinos Altos mine |
Minimum
 
Payment of royalty
 
Percentage of net profits interest royalty and net smelter return royalty
2.50% 
Pinos Altos mine |
Maximum
 
Payment of royalty
 
Percentage of net profits interest royalty and net smelter return royalty
3.50% 
Abitibi |
Minimum
 
Payment of royalty
 
Percentage of net profits interest royalty and net smelter return royalty
2.50% 
Abitibi |
Maximum
 
Payment of royalty
 
Percentage of net profits interest royalty and net smelter return royalty
5.00% 
Kittila mine
 
Payment of royalty
 
Percentage of net smelter return production royalty the company has to pay
2.00% 
LEASES (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
LEASES
 
 
Average Effective Annual Interest Rate (as a percent)
5.90% 
 
Average Length of Contract
4 years 8 months 12 days 
 
Gross amount of assets under sale-leaseback
$ 37.6 
$ 33.9 
LEASES (Details 2) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Future minimum lease payment under capital lease
 
 
 
2014
$ 12,776,000 
 
 
2015
5,678,000 
 
 
2016
2,268,000 
 
 
2017
2,268,000 
 
 
2018
2,268,000 
 
 
Total minimum lease payments
25,258,000 
26,668,000 
 
Less amount representing interest
1,380,000 
1,605,000 
 
Present value of net minimum lease payments
23,878,000 
25,063,000 
 
Less: current portion
12,035,000 
12,955,000 
 
Long-term portion of capital lease obligations
11,843,000 
12,108,000 
 
Gross amount of assets under capital leases
51,800,000 
51,000,000 
56,900,000 
Minimum Lease Payment under operating leases
 
 
 
2014
1,783,000 
 
 
2015
1,032,000 
 
 
2016
822,000 
 
 
2017
816,000 
 
 
2018
836,000 
 
 
Thereafter
2,470,000 
 
 
Total
7,759,000 
 
 
Total rental expense for operating leases
$ 1,600,000 
$ 1,100,000 
$ 900,000 
Meadowbank mine
 
 
 
Capital lease of lessee
 
 
 
Capital lease period
5 years 
 
 
Effective Annual Interest Rate (as a percent)
5.50% 
 
 
RESTRICTED CASH (Details) (USD $)
0 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 29, 2013
Tocqueville Bullion Reserve, Ltd.
Jan. 2, 2014
Tocqueville Bullion Reserve, Ltd.
Subsequent Event
Dec. 31, 2013
Self-insurance deposit
Dec. 31, 2012
Self-insurance deposit
Dec. 31, 2011
Qualified environmental trust fund
Dec. 31, 2013
Qualified environmental trust fund
Dec. 31, 2012
Qualified environmental trust fund
RESTRICTED CASH
 
 
 
 
 
 
 
 
 
Restricted cash
$ 28,723,000 
$ 25,450,000 
 
 
$ 6,900,000 
$ 4,700,000 
 
$ 16,800,000 
$ 20,700,000 
Contribution to qualified environmental trust ("QET")
 
 
 
 
 
 
32,000,000 
 
 
Amount withdrawn from the trust to fund the environmental remediation expenditures
 
 
 
 
 
 
 
2,800,000 
12,000,000 
Amount deposited into restricted account
 
 
$ 5,000,000 
 
 
 
 
 
 
Number of shares acquired
 
 
 
5,000 
 
 
 
 
 
Purchase price (in dollars per shares)
 
 
 
$ 1,000 
 
 
 
 
 
FINANCIAL INSTRUMENTS (Details) (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
(Gain) loss on derivative financial instruments
 
 
 
Gain (loss) on derivative financial instruments
$ 1,509,000 
$ (819,000)
$ 3,683,000 
Warrants
 
 
 
(Gain) loss on derivative financial instruments
 
 
 
Realized loss on derivative financial instruments
(2,827,000)
 
 
Mark-to-market gain (loss)
(488,000)
(1,294,000)
 
Zinc
 
 
 
Financial instruments
 
 
 
Number of derivative instruments outstanding
0 
0 
 
Copper
 
 
 
Financial instruments
 
 
 
Number of derivative instruments outstanding
0 
0 
 
Silver
 
 
 
Financial instruments
 
 
 
Number of derivative instruments outstanding
0 
0 
 
Metal
 
 
 
Financial instruments
 
 
 
Number of derivative instruments outstanding
0 
0 
 
Designated as hedges |
Zinc
 
 
 
(Gain) loss on derivative financial instruments
 
 
 
Realized gain on derivative financial instruments
60,000 
430,000 
3,419,000 
Designated as hedges |
Copper
 
 
 
(Gain) loss on derivative financial instruments
 
 
 
Realized gain on derivative financial instruments
 
63,000 
79,000 
Designated as hedges |
Silver
 
 
 
(Gain) loss on derivative financial instruments
 
 
 
Realized loss on derivative financial instruments
 
 
(3,403,000)
Designated as hedges |
Heating oil
 
 
 
(Gain) loss on derivative financial instruments
 
 
 
Realized loss on derivative financial instruments
 
(1,523,000)
 
Foreign exchange zero cost collars |
Designated as hedges
 
 
 
Financial instruments
 
 
 
Net premium payable to counterparty
   
 
 
Foreign exchange zero cost collars |
Designated as hedges |
2014 expenditures
 
 
 
Financial instruments
 
 
 
Amount of expenditures hedged
60,000,000 
 
 
Call options |
Sell
 
 
 
Financial instruments
 
 
 
Number of derivative instruments outstanding
0 
 
 
(Gain) loss on derivative financial instruments
 
 
 
Premiums realized on written foreign exchange call options
3,375,000 
1,505,000 
4,995,000 
Exposure to interest rate risk
170,000,000 
332,000,000 
 
Fixed weighted average interest rate on short-term investments and cash equivalents (as a percent)
0.53% 
0.47% 
 
Expected 2013 diesel fuel exposure |
Designated as hedges |
Heating oil
 
 
 
Financial instruments
 
 
 
Notional amount
10,500,000 
 
 
Average price (in dollars per gallon)
2.99 
 
 
Percentage of Meadowbank's expected exposure
55.00% 
 
 
Foreign exchange forwards
 
 
 
(Gain) loss on derivative financial instruments
 
 
 
Realized loss on derivative financial instruments
 
 
(1,407,000)
Equity derivative
 
 
 
(Gain) loss on derivative financial instruments
 
 
 
Mark-to-market gain (loss)
$ 1,389,000 
 
 
GENERAL AND ADMINISTRATIVE (Details) (USD $)
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2011
Mar. 31, 2011
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
GENERAL AND ADMINISTRATIVE
 
 
 
 
 
Insurance receivable
 
 
$ 1,369,000 
$ 6,553,000 
 
Meadowbank Mine Fire
 
 
 
 
 
GENERAL AND ADMINISTRATIVE
 
 
 
 
 
Loss on disposal due to kitchen fire at Meadowbank Mine
6,900,000 
 
 
 
 
Costs related to disposal of property
7,400,000 
 
 
 
 
Insurance receivable
11,200,000 
11,200,000 
700,000 
6,600,000 
8,800,000 
Loss due to fire recognized in the General and Administrative
 
3,100,000 
 
 
 
Insurance proceeds received
 
 
$ 5,200,000 
$ 2,200,000 
$ 2,400,000 
LOSS ON GOLDEX MINE (Details) (Goldex mine, USD $)
In Thousands, unless otherwise specified
1 Months Ended 12 Months Ended
Sep. 30, 2011
oz
Dec. 31, 2011
Goldex mine
 
 
Loss on suspended operations
 
 
Proven and probable gold reserves (in ounces)
1,600,000 
 
Impairment loss on Goldex mine property, plant, and mine development
 
$ 237,110 
Loss on underground ore stockpile
 
16,641 
Supplies inventory obsolescence provision
 
1,915 
Increase in environmental remediation liability
 
47,227 
Loss on Goldex mine (before income and mining taxes)
 
$ 302,893 
IMPAIRMENT LOSS (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
item
Dec. 31, 2011
Dec. 31, 2012
Property, plant and mine development:
 
 
 
Pre-impairment Carrying Value
$ 4,049,117 
 
$ 4,067,456 
Impairment loss
(537,227)
(907,681)
 
Impairment Loss (net of tax)
(436,262)
 
 
Goodwill:
 
 
 
Pre-impairment Carrying Value
239,081 
 
229,279 
Impairment loss
(200,064)
 
 
Additional disclosures
 
 
 
Derivative inflation rates (as a percent)
2.00% 
 
 
Number of components of weighted average cost of capital
2 
 
 
Meliadine project
 
 
 
Goodwill:
 
 
 
Pre-impairment Carrying Value
200,064 
 
 
Impairment loss
(200,064)
 
 
Impairment Loss (net of tax)
(200,064)
 
 
Additional disclosures
 
 
 
Percentage of discount rate used to calculated fair value by discounting the estimated future net cash flows
8.00% 
 
 
Percentage of average gold recovery
95.10% 
 
 
Meliadine project |
Minimum
 
 
 
Additional disclosures
 
 
 
Gold prices (in dollars per ounce)
1,238 
 
 
Foreign exchange rate
0.90 
 
 
Meliadine project |
Maximum
 
 
 
Additional disclosures
 
 
 
Gold prices (in dollars per ounce)
1,300 
 
 
Foreign exchange rate
0.93 
 
 
Property, plant and mine development
 
 
 
Property, plant and mine development:
 
 
 
Pre-impairment Carrying Value
869,265 
 
 
Impairment loss
(337,163)
 
 
Post-impairment Carrying Value
532,102 
 
 
Impairment Loss (net of tax)
(236,198)
 
 
Property, plant and mine development |
Minimum
 
 
 
Additional disclosures
 
 
 
Gold prices (in dollars per ounce)
1,238 
 
 
Foreign exchange rate
0.90 
 
 
Property, plant and mine development |
Maximum
 
 
 
Additional disclosures
 
 
 
Gold prices (in dollars per ounce)
1,300 
 
 
Foreign exchange rate
0.93 
 
 
Meadowbank mine
 
 
 
Property, plant and mine development:
 
 
 
Pre-impairment Carrying Value
732,499 
1,670,838 
 
Impairment loss
(269,269)
(907,681)
 
Post-impairment Carrying Value
463,230 
763,157 
 
Impairment Loss (net of tax)
(194,511)
(644,903)
 
Additional disclosures
 
 
 
Percentage of discount rate used to calculated fair value by discounting the estimated future net cash flows
6.50% 
7.00% 
 
Percentage of average gold recovery
92.30% 
92.90% 
 
Meadowbank mine |
Minimum
 
 
 
Additional disclosures
 
 
 
Gold prices (in dollars per ounce)
 
1,250 
 
Foreign exchange rate
 
0.92 
 
Meadowbank mine |
Maximum
 
 
 
Additional disclosures
 
 
 
Gold prices (in dollars per ounce)
 
1,553 
 
Foreign exchange rate
 
0.97 
 
Lapa mine
 
 
 
Property, plant and mine development:
 
 
 
Pre-impairment Carrying Value
136,766 
 
 
Impairment loss
(67,894)
 
 
Post-impairment Carrying Value
68,872 
 
 
Impairment Loss (net of tax)
$ (41,687)
 
 
Additional disclosures
 
 
 
Percentage of discount rate used to calculated fair value by discounting the estimated future net cash flows
5.50% 
 
 
Percentage of average gold recovery
78.30% 
 
 
SEGMENTED INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
item
Dec. 31, 2012
Dec. 31, 2011
SEGMENTED INFORMATION
 
 
 
Minimum required percentage of combined revenue, profit or loss or total assets of reported operating segments
10.00% 
 
 
Number of business units
3 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
$ 1,638,406 
$ 1,917,714 
$ 1,821,799 
Production Costs
(924,927)1
(897,712)1
(876,078)1
Exploration and Corporate Development
(44,236)
(109,500)
(75,721)
Impairment loss
(537,227)
 
(907,681)
Loss on Goldex mine
 
 
(302,893)
Segment Income (Loss)
132,016 
910,502 
(340,574)
Foreign Currency Translation (Loss) Gain
7,188 
(16,320)
1,082 
Amortization of Property, Plant and Mine Development
(296,078)
(271,861)
(261,781)
Interest and sundry expense
(8,824)
(2,389)
(5,188)
Gain on sale of available-for-sale securities
74 
9,733 
4,907 
Gain (loss) on derivative financial instruments
1,509 
(819)
3,683 
General and administrative expenses
(115,800)
(119,085)
(107,926)
Impairment loss on available-for-sale securities
(34,272)
(12,732)
(8,569)
Provincial Capital Tax
1,504 
(4,001)
(9,223)
Interest expense
(57,999)
(57,887)
(55,039)
Income (loss) before income and mining taxes
(370,682)
435,141 
(778,628)
Total Assets
4,959,359 
5,256,119 
 
Capital Expenditures
577,789 
445,550 
482,831 
Cost
 
 
 
Balance at the beginning of the period
229,279 
 
 
Purchase price
9,802 
 
 
Balance at the end of the period
239,081 
229,279 
 
Accumulated impairment
 
 
 
Impairment loss
(200,064)
 
 
Balance at the end of the period
(200,064)
 
 
Goodwill
39,017 
229,279 
 
Meadowbank
 
 
 
Segment reporting Information
 
 
 
Impairment loss
(269,269)
 
(907,681)
Meliadine Mine Project
 
 
 
Cost
 
 
 
Balance at the beginning of the period
200,064 
 
 
Balance at the end of the period
200,064 
 
 
Accumulated impairment
 
 
 
Impairment loss
(200,064)
 
 
Balance at the end of the period
(200,064)
 
 
La India Mine Project
 
 
 
Cost
 
 
 
Balance at the end of the period
29,215 
29,215 
 
Accumulated impairment
 
 
 
Goodwill
29,215 
 
 
Northern Business
 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
1,293,681 
1,467,050 
1,443,470 
Production Costs
(774,955)
(744,770)
(730,464)
Exploration and Corporate Development
 
(37,627)
 
Impairment loss
(537,227)
 
(907,681)
Loss on Goldex mine
 
 
(302,893)
Segment Income (Loss)
(18,501)
684,653 
(497,568)
Total Assets
3,537,255 
3,933,212 
 
Capital Expenditures
394,086 
368,985 
428,682 
Northern Business |
LaRonde mine
 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
329,900 
399,243 
398,609 
Production Costs
(229,911)
(225,647)
(209,947)
Segment Income (Loss)
99,989 
173,596 
188,662 
Total Assets
878,719 
849,304 
 
Capital Expenditures
84,292 
75,214 
90,735 
Northern Business |
Lapa mine
 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
141,167 
173,753 
167,536 
Production Costs
(69,532)
(73,376)
(68,599)
Impairment loss
(67,894)
 
 
Segment Income (Loss)
3,741 
100,377 
98,937 
Total Assets
78,293 
168,712 
 
Capital Expenditures
22,738 
18,475 
18,397 
Northern Business |
Goldex mine
 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
21,418 
 
217,662 
Production Costs
(13,172)
 
(56,939)
Exploration and Corporate Development
 
(37,627)
 
Loss on Goldex mine
 
 
(302,893)
Segment Income (Loss)
8,246 
(37,627)
(142,170)
Total Assets
120,601 
56,819 
 
Capital Expenditures
65,063 
26,822 
42,232 
Northern Business |
Meadowbank mine
 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
591,473 
609,625 
434,051 
Production Costs
(363,894)
(347,710)
(284,502)
Impairment loss
(269,269)
 
(907,681)
Segment Income (Loss)
(41,690)
261,915 
(758,132)
Total Assets
711,387 
1,005,890 
 
Capital Expenditures
76,811 
105,095 
116,860 
Northern Business |
Meliadine Mine Project
 
 
 
Segment reporting Information
 
 
 
Impairment loss
(200,064)
 
 
Segment Income (Loss)
(200,064)
 
 
Total Assets
877,923 
1,015,485 
 
Capital Expenditures
61,412 
83,343 
73,944 
Northern Business |
Kittila mine
 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
209,723 
284,429 
225,612 
Production Costs
(98,446)
(98,037)
(110,477)
Segment Income (Loss)
111,277 
186,392 
115,135 
Total Assets
870,332 
837,002 
 
Capital Expenditures
83,770 
60,036 
86,514 
Southern Business
 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
344,725 
450,664 
378,329 
Production Costs
(149,972)
(152,942)
(145,614)
Segment Income (Loss)
194,753 
297,722 
232,715 
Total Assets
1,136,195 
1,056,001 
 
Capital Expenditures
177,203 
69,225 
39,966 
Southern Business |
Pinos Altos mine
 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
303,203 
363,113 
321,074 
Production Costs
(130,129)
(128,618)
(131,044)
Segment Income (Loss)
173,074 
234,495 
190,030 
Total Assets
537,560 
610,217 
 
Capital Expenditures
42,835 
24,212 
32,407 
Southern Business |
Creston Mascota deposit at Pinos Altos
 
 
 
Segment reporting Information
 
 
 
Revenues from Mining Operations
41,522 
87,551 
57,255 
Production Costs
(19,843)
(24,324)
(14,570)
Segment Income (Loss)
21,679 
63,227 
42,685 
Total Assets
86,185 
68,735 
 
Capital Expenditures
17,582 
5,777 
7,559 
Southern Business |
La India Mine Project
 
 
 
Segment reporting Information
 
 
 
Total Assets
512,450 
377,049 
 
Capital Expenditures
116,786 
39,236 
 
Exploration
 
 
 
Segment reporting Information
 
 
 
Exploration and Corporate Development
(44,236)
(71,873)
(75,721)
Segment Income (Loss)
(44,236)
(71,873)
(75,721)
Total Assets
19,838 
19,225 
 
Capital Expenditures
 
55 
8,561 
Corporate and Other Income (Loss)
 
 
 
Segment reporting Information
 
 
 
Segment Income (Loss)
132,016 
910,502 
(340,574)
Foreign Currency Translation (Loss) Gain
7,188 
(16,320)
1,082 
Amortization of Property, Plant and Mine Development
(296,078)
(271,861)
(261,781)
Interest and sundry expense
(8,824)
(2,389)
(5,188)
Gain on sale of available-for-sale securities
74 
9,733 
4,907 
Gain (loss) on derivative financial instruments
1,509 
(819)
3,683 
General and administrative expenses
(115,800)
(119,085)
(107,926)
Impairment loss on available-for-sale securities
(34,272)
(12,732)
(8,569)
Provincial Capital Tax
1,504 
(4,001)
(9,223)
Interest expense
(57,999)
(57,887)
(55,039)
Income (loss) before income and mining taxes
(370,682)
435,141 
(778,628)
Total Assets
266,071 
247,681 
 
Capital Expenditures
6,500 
7,285 
5,622 
Cost
 
 
 
Balance at the end of the period
9,802 
 
 
Accumulated impairment
 
 
 
Goodwill
9,802 
 
 
Corporate and Other Income (Loss) |
Urastar Gold Corporation
 
 
 
Cost
 
 
 
Purchase price
$ 9,802 
 
 
SUBSEQUENT EVENTS (Details)
In Millions, except Per Share data, unless otherwise specified
0 Months Ended 0 Months Ended
Dec. 3, 2008
Feb. 12, 2014
Subsequent event
USD ($)
Jan. 28, 2014
Subsequent event
CAD ($)
Jan. 13, 2014
Subsequent event
Akasaba West Property
CAD ($)
Jan. 13, 2014
Subsequent event
Akasaba West Property
Minimum
oz
Jan. 13, 2014
Subsequent event
Akasaba West Property
Maximum
Subsequent Events
 
 
 
 
 
 
Cash consideration paid to purchase property
 
 
 
$ 5.0 
 
 
Percentage of net smelter return production royalty the company has to pay
 
 
 
2.00% 
2.00% 
 
Percentage of net proceeds of production royalty the company has to pay
 
 
 
 
 
20.00% 
Quantity of gold produced for payment of royalty
 
 
 
 
210,000 
 
Right to purchase royalty interest in mining properties (as a percent)
 
 
 
50.00% 
 
 
Cash consideration paid to purchase royalty interest
 
 
 
7.0 
 
 
Warrant exercise period
5 years 
 
 
 
 
 
Total consideration value
 
 
$ 9.3 
 
 
 
Payment of a quarterly cash dividend (in dollars per share)
 
$ 0.08 
 
 
 
 
SECURITIES CLASS ACTION LAWSUITS (Details) (CAD $)
In Millions, unless otherwise specified
0 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Feb. 6, 2012
Goldex mine
item
Nov. 30, 2011
Goldex mine
item
Dec. 31, 2013
Goldex Mine Ontario Claim
Apr. 12, 2012
Goldex Mine Claim 2
item
Dec. 31, 2013
Goldex Mine Claim 2
Securities class action lawsuits
 
 
 
 
 
Number of putative class actions against entity
 
2 
 
 
 
Number of complaints to be consolidated
2 
 
 
 
 
Number of directors served with motion regarding Class Action
 
 
 
2 
 
Damages sought
 
 
$ 250.0 
 
$ 100.0 
Maximum number of Quebec resident employees in entities on behalf of which the class action is pursued
 
 
 
50