AGNICO EAGLE MINES LTD, 6-K filed on 11/9/2011
Report of Foreign Issuer
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands
Sep. 30, 2011
Dec. 31, 2010
Current
 
 
Cash and cash equivalents
$ 110,425 
$ 95,560 
Short-term investments
2,951 
6,575 
Restricted cash
3,294 
2,510 
Trade receivables
78,779 
112,949 
Inventories:
 
 
Ore stockpiles
52,277 
67,764 
Concentrates and dore
77,969 
50,332 
Supplies
206,096 
149,647 
Available-for-sale securities (note 7)
147,961 
99,109 
Other current assets
117,782 
89,776 
Total current assets
797,534 
674,222 
Other assets
52,604 
61,502 
Goodwill
200,064 
200,064 
Property, plant and mine development
4,493,849 
4,564,563 
TOTAL ASSETS
5,544,051 
5,500,351 
Current
 
 
Accounts payable and accrued liabilities
226,414 
160,375 
Reclamation provision
44,400 
 
Dividends payable
26,929 
108,009 
Interest payable
19,855 
9,743 
Income taxes payable
9,927 
14,450 
Capital lease obligations
10,662 
10,592 
Fair value of derivative financial instruments (note 9)
17,308 
142 
Total current liabilities
355,495 
303,311 
Long-term debt (note 8)
650,000 
650,000 
Reclamation provision and other liabilities
138,720 
145,536 
Future income and mining tax liabilities
677,072 
736,054 
SHAREHOLDERS' EQUITY
 
 
Common shares (note 5)
3,117,067 
3,078,217 
Stock options (note 6)
110,127 
78,554 
Warrants
24,858 
24,858 
Contributed surplus
15,164 
15,166 
Retained earnings
472,740 
440,265 
Accumulated other comprehensive income (loss)
(17,192)
28,390 
Total shareholders' equity
3,722,764 
3,665,450 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 5,544,051 
$ 5,500,351 
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, except Per Share data
3 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
2011
2010
2011
2010
REVENUES
 
 
 
 
Revenues from mining operations
$ 520,537 
$ 398,478 
$ 1,366,296 
$ 983,517 
COSTS, EXPENSES AND OTHER INCOME
 
 
 
 
Production
237,190 
196,674 
648,511 
481,474 
Exploration and corporate development
9,610 
19,491 
43,877 
39,950 
Amortization of property, plant and mine development
67,104 
48,145 
188,268 
122,651 
General and administrative (note 12)
20,410 
19,925 
79,684 
71,595 
Provincial capital tax
 
(6,934)
 
(6,779)
Interest
14,918 
14,722 
42,915 
34,535 
Loss (gain) on derivative financial instruments (note 9)
1,678 
1,330 
(654)
(3,826)
Interest and sundry loss (income) (note 10)
46 
(1,784)
22 
(3,943)
Loss (gain) on sale and write-down of available-for-sale securities (note 7)
3,402 
(7,839)
(1,412)
(8,185)
Gain on acquisition of Comaplex
 
(57,526)
 
(57,526)
Loss on Goldex Mine (note 13)
298,183 
 
298,183 
 
Gain on sale of mining property
 
(8,888)
 
(8,888)
Foreign currency translation loss (gain)
(21,420)
17,685 
(4,642)
9,159 
Income (loss) before income and mining taxes
(110,584)
163,477 
71,544 
313,300 
Income and mining tax (benefit) expense
(28,970)
42,016 
39,069 
69,147 
Net income (loss) for the period
(81,614)
121,461 
32,475 
244,153 
Net income (loss) per share - basic (in dollars per share)
$ (0.48)
$ 0.73 
$ 0.19 
$ 1.52 
Net income (loss) per share - diluted (in dollars per share)
$ (0.48)
$ 0.71 
$ 0.19 
$ 1.49 
Weighted average number of common shares outstanding (in thousands)
 
 
 
 
Basic (in shares)
169,238 
167,461 
169,055 
160,353 
Diluted (in shares)
169,238 
170,679 
172,646 
163,342 
Comprehensive income:
 
 
 
 
Net income (loss) for the period
(81,614)
121,461 
32,475 
244,153 
Other comprehensive income (loss):
 
 
 
 
Unrealized (loss) gain on available-for-sale securities
(36,226)
6,240 
(32,651)
39,211 
Unrealized loss on derivative financial instruments
(15,994)
 
(15,994)
 
Adjustments for realized gain (loss) on available-for-sale securities due to dispositions and write-downs during the period
3,402 
(7,840)
(1,412)
(8,186)
Net amount reclassified to income due to acquisition of business
 
(64,508)
 
(64,508)
Amortization of unrecognized gain (loss) on pension liability
110 
(47)
330 
(141)
Tax effect of other comprehensive income items
4,190 
12 
4,145 
36 
Other comprehensive loss for the period
(44,518)
(66,143)
(45,582)
(33,588)
Comprehensive income (loss) for the period
$ (126,132)
$ 55,318 
$ (13,107)
$ 210,565 
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)
In Thousands
Total
Retained earnings
Accumulated other comprehensive income (loss)
Balance at Dec. 31, 2009
 
$ 216,158 
$ 51,049 
Increase (Decrease) in Shareholders' Equity
 
 
 
Net income (loss) for the period
244,153 
244,153 
 
Other comprehensive loss for the period
(33,588)
 
(33,588)
Balance at Sep. 30, 2010
(17,461)
460,311 
17,461 
Balance at Jun. 30, 2010
 
338,850 
83,604 
Increase (Decrease) in Shareholders' Equity
 
 
 
Net income (loss) for the period
121,461 
121,461 
 
Other comprehensive loss for the period
(66,143)
 
(66,143)
Balance at Sep. 30, 2010
(17,461)
460,311 
17,461 
Balance at Dec. 31, 2010
440,265 
440,265 
28,390 
Increase (Decrease) in Shareholders' Equity
 
 
 
Net income (loss) for the period
32,475 
32,475 
 
Other comprehensive loss for the period
(45,582)
 
(45,582)
Balance at Sep. 30, 2011
472,740 
472,740 
(17,192)
Balance at Jun. 30, 2011
 
554,354 
27,326 
Increase (Decrease) in Shareholders' Equity
 
 
 
Net income (loss) for the period
(81,614)
(81,614)
 
Other comprehensive loss for the period
(44,518)
 
(44,518)
Balance at Sep. 30, 2011
$ 472,740 
$ 472,740 
$ (17,192)
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands
3 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
2011
2010
2011
2010
Operating activities
 
 
 
 
Net income (loss) for the period
$ (81,614)
$ 121,461 
$ 32,475 
$ 244,153 
Add (deduct) items not affecting cash:
 
 
 
 
Amortization of property, plant and mine development
67,104 
48,145 
188,268 
122,651 
Future income and mining taxes
(73,348)
33,176 
(47,434)
46,702 
Loss on Goldex Mine
298,183 
 
298,183 
 
Loss (gain) on sale and write-down of available-for-sale securities and derivative financial instruments
6,865 
(5,407)
(97)
(9,582)
Gain on acquisition of Comaplex
 
(57,526)
 
(57,526)
Stock-based compensation
10,183 
9,376 
37,951 
35,711 
Foreign currency translation loss (gain)
(21,420)
17,685 
(4,642)
9,159 
Other
7,572 
3,968 
17,464 
11,040 
Changes in non-cash working capital balances
 
 
 
 
Trade receivables
(13,958)
(18,459)
34,170 
9,757 
Income taxes payable
6,971 
(14,443)
(5,536)
252 
Other taxes recoverable
(4,857)
(12,585)
14,582 
(22,766)
Inventories
(12,631)
(30,303)
(66,893)
(71,912)
Other current assets
(18,710)
7,406 
(43,208)
(3,198)
Interest payable
10,047 
9,692 
10,112 
17,915 
Accounts payable and accrued liabilities
17,183 
44,643 
66,039 
60,538 
Cash provided by operating activities
197,570 
156,829 
531,434 
392,894 
Investing activities
 
 
 
 
Additions to property, plant and mine development
(164,003)
(174,058)
(375,254)
(403,638)
Decrease (increase) in short-term investments
(481)
(1,895)
3,624 
(1,721)
Net proceeds on sale of available-for-sale securities and other
 
12,623 
9,330 
14,004 
Purchases of available-for-sale securities
(83,533)
(418)
(90,818)
(6,708)
(Increase) decrease in restricted cash
245 
(50)
(784)
(1,890)
Cash used in investing activities
(247,772)
(163,798)
(453,902)
(399,953)
Financing activities
 
 
 
 
Dividends paid
(23,571)
 
(72,704)
(26,830)
Repayment of capital lease obligations
(2,564)
(2,664)
(9,803)
(12,776)
Proceeds from long-term debt
125,000 
70,000 
205,000 
1,271,000 
Repayment of long-term debt
(75,000)
(90,000)
(205,000)
(1,271,000)
Sale-leaseback financing
 
3,856 
 
6,861 
Credit facility financing cost
(2,494)
(187)
(2,494)
(12,675)
Proceeds from common shares issued
7,735 
19,526 
23,085 
33,883 
Cash provided by (used in) financing activities
29,106 
531 
(61,916)
(11,537)
Effect of exchange rate changes on cash and cash equivalents
(1,429)
(177)
(751)
(492)
Net increase (decrease) in cash and cash equivalents during the period
(22,525)
(6,615)
14,865 
(19,088)
Cash and cash equivalents, beginning of period
132,950 
147,807 
95,560 
160,280 
Cash and cash equivalents, end of period
110,425 
141,192 
110,425 
141,192 
Supplemental cash flow information:
 
 
 
 
Interest paid
5,439 
3,534 
31,743 
16,964 
Income, mining and capital taxes paid
$ 39,720 
$ 16,028 
$ 89,476 
$ 17,525 
BASIS OF PRESENTATION
BASIS OF PRESENTATION

1.     BASIS OF PRESENTATION

  • The accompanying unaudited interim consolidated financial statements of Agnico-Eagle Mines Limited ("Agnico-Eagle" or the "Company") have been prepared in accordance with United States generally accepted accounting principles ("GAAP") in US dollars. They do not include all of the disclosures required by GAAP for annual financial statements. Accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the fiscal 2010 annual consolidated financial statements, including the accounting policies and notes thereto, included in the Annual Report and Annual Information Form/Form 20-F for the year ended December 31, 2010. In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments, which consist only of normal and recurring adjustments necessary to present fairly the financial position as at September 30, 2011 and the results of operations and cash flows for the three and nine months ended September 30, 2011 and 2010.

    Operating results for the three and nine months ended September 30, 2011 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2011.

USE OF ESTIMATES
USE OF ESTIMATES

2.     USE OF ESTIMATES

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

ACCOUNTING POLICIES
ACCOUNTING POLICIES

3.     ACCOUNTING POLICIES

  • These interim consolidated financial statements follow the same accounting policies and methods of their application as the December 31, 2010 audited annual consolidated financial statements except for the changes discussed below.

    Recently Adopted Accounting Pronouncements

    Fair Value Accounting

    In January 2010, the Financial Accounting Standards Board ("FASB") guidance for fair value measurements and disclosures was updated to require additional disclosures. The updated guidance was effective for the Company's fiscal year beginning January 1, 2010, with the exception of the Level 3 disaggregation which was effective for the Company's fiscal year beginning January 1, 2011. Adoption of this updated guidance had no impact on the Company's financial position, results of operation or cash flows. See Note 4 for details regarding the Company's assets and liabilities measured at fair value.

    Business Combinations

    In December 2010, the Accounting Standards Codification ("ASC") guidance for business combinations was updated to clarify existing guidance which requires a public entity to disclose pro forma revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual period only. The update also expands the supplemental pro forma disclosures required to include a description of the nature and amount of material, non-recurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. Adoption of this updated guidance, effective for the Company's fiscal year beginning January 1, 2011, had no impact on the Company's financial position, results of operations or cash flows.

    Revenue Recognition — Multiple-Deliverable Revenue Arrangements

    In October 2009, the FASB issued an amendment to its guidance on multiple - deliverable revenue arrangements which is effective for fiscal years beginning on or after June 15, 2010. This updated guidance addresses accounting and reporting for arrangements under which the vendor will perform multiple revenue - generating activities, including how to separate deliverables and measure and allocate the arrangement consideration. This amendment also significantly expands the disclosure requirements related to a vendor's multiple-deliverable revenue arrangement. Based on the Company's assessment, these changes did not have an impact on its current accounting for revenue or required disclosures.

    Recently Issued Accounting Pronouncements

    Comprehensive Income

    In June 2011, ASC guidance was issued related to comprehensive income. Under the updated guidance, an entity will have the option to present the total of comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In addition, the update requires certain disclosure requirements when reporting other comprehensive income. The update does not change the items reported in other comprehensive income or when an item of other comprehensive income must be reclassified to income. The update is effective for the Company's fiscal year beginning January 1, 2012. The Company does not expect the updated guidance to have an impact on the consolidated financial position, results of operations or cash flows.

    Fair Value Accounting

    In May 2011, ASC guidance was issued related to disclosures around fair value accounting. The updated guidance clarifies different components of fair value accounting including the application of the highest and best use and valuation premise concepts, measuring the fair value of an instrument classified in a reporting entity's shareholders' equity and disclosing quantitative information about the unobservable inputs used in fair value measurements that are categorized in Level 3 of the fair value hierarchy. The update is effective for the Company's fiscal year beginning January 1, 2012. The Company does not expect the updated guidance to have a significant impact on the consolidated financial position, results of operations or cash flows.

    Goodwill Impairment

    In September 2011, ASC guidance was issued related to testing goodwill for impairment. Under the updated guidance, entities are permitted to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test per Topic 350. Previous guidance required an entity to test goodwill for impairment, on at least an annual basis, by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit is less than its carrying amount, then the second step of the test would be performed to measure the amount of the impairment loss, if any. An entity is no longer required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount. The update is effective for the Company's fiscal year beginning January 1, 2012, with earlier application permitted. The Company is in the process of evaluating the impact of the updated guidance, including the potential for early application, on its goodwill impairment assessment processes.

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 GAAP, and requires expanded disclosures about fair value measurements. The three levels of the fair value hierarchy under the Fair Value Measurements and Disclosure Topic of the FASB Accounting Standards Codification are as follows:

    • 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 forth the Company's financial assets and liabilities measured at fair value within the fair value hierarchy.

   
  Total   Level 1   Level 2   Level 3  
 

Financial assets:

                         
 

Cash equivalents, and short-term investments(1)

  $ 7,212   $   $ 7,212   $  
 

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

    147,961     145,228     2,733      
 

Trade receivables(4)

    78,779         78,779      
 

Derivative assets(3)

                 
                     
 

 

  $ 233,952   $ 145,228   $ 88,724   $  
                     
 

Financial liabilities:

                         
 

Derivative liabilities(3)

  $ 17,308   $   $ 17,308   $  
                     


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

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

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

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

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

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

SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY

5.     SHAREHOLDERS' EQUITY

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

    During the first quarter of 2011, the Company funded the plan by transferring $3.7 million (2010 — $4.0 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. On consolidation, the dividends paid on the shares held by the Trust were eliminated. The shares purchased and held by the Trust are treated as not being outstanding for the basic earnings per share ("EPS") calculations. They are included in basic EPS once they have vested. All of the unvested shares held by the Trust were included in the diluted EPS calculations.

    The following table presents the maximum number of common shares that would be outstanding if all instruments outstanding at September 30, 2011 were exercised:

 

Common shares outstanding at September 30, 2011

    169,377,973  
 

Employees' stock options

    8,960,551  
 

Warrants

    8,600,000  
 

Restricted share unit plan

    50,391  
         
 

 

    186,988,915  
         
  • During the nine months ended September 30, 2011, 2,620,785 (2010 — 2,911,080) options were granted with a weighted average exercise price of C$76.24 (2010 — C$57.42), 306,688 (2010 — 673,098) employee stock options were exercised for cash of $13.5 million (2010 — $26.6 million), and 116,250 (2010 — 196,800) options were cancelled with a weighted average exercise price of C$67.40 (2010 — C$57.84).

    During the three months ended September 30, 2011, 27,000 (2010 — 116,000) options were granted with a weighted average exercise price of C$55.25 (2010 — C$66.26), 89,300 (2010 — 387,725) employee stock options were exercised for cash of $4.6 million (2010 — $17.1 million), and 24,500 (2010 — 143,750) options were cancelled with a weighted average exercise price of $69.37 (2010 — C$58.63).

    The following table illustrates the changes in common shares outstanding for the nine months ended September 30, 2011:

   
  # of Shares   $ Amount  
 

Common shares outstanding, beginning of period

    168,720,355     3,078,217  
 

Shares issued under Employee Stock Option Plan

    306,688     16,972  
 

Shares issued under Incentive Share Purchase Plan

    223,191     14,238  
 

Shares issued under Dividend Reinvestment Plan

    134,990     8,494  
 

Restricted share unit plan

    (7,251 )   (854 )
             
 

Common shares outstanding, end of period

    169,377,973     3,117,067  
             
  • The following table provides the reconciliation for the weighted average number of common shares in the calculation of basic and diluted income (loss) per share:

   
  Three months ended
September 30,
  Nine months ended
September 30,
 
   
  2011   2010   2011   2010  
 

Net income (loss)

  $ (81,614 ) $ 121,461   $ 32,475   $ 244,153  
                     
 

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

    169,238     167,461     169,055     160,353  
   

Add: Dilutive impact of employee stock options

        1,131     1,094     1,131  
   

Dilutive impact of warrants

        2,040     2,447     1,811  
   

Dilutive impact of treasury shares related to restricted share unit plan

        47     50     47  
                     
 

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

    169,238     170,679     172,646     163,342  
                     
 

Net income (loss) per share — basic

  $ (0.48 ) $ 0.73   $ 0.19   $ 1.52  
                     
 

Net income (loss) per share — diluted

  $ (0.48 ) $ 0.71   $ 0.19   $ 1.49  
                     
  • The calculation of diluted net income (loss) per share has been computed using the treasury stock method.

    For the three months ended September 30, 2011, all employee stock options, warrants, and treasury shares related to the restricted share unit plan were excluded from the computation of diluted weighted average common shares because their effect would have been anti-dilutive.

    For the nine months ended September 30, 2011, there were 738,321 employee stock options excluded from the computation of diluted weighted average common shares because their effect would have been anti-dilutive. For the three and nine months ended September 30, 2010, there were 1,033,525 employee stock options excluded from the computation of diluted weighted average common shares because their effect would have been anti-dilutive.

    For the nine months ended September 30, 2011, and the three and nine months ended September 30, 2010, the Company's warrants and treasury shares related to the restricted share unit plan were dilutive and were included in the calculation of diluted net income (loss) per share.

STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

6.     STOCK-BASED COMPENSATION

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

   
  Nine months ended
September 30, 2011
 
   
  # of Options   Weighted average
exercise price
 
   
   
  (C$)
 
 

Outstanding, beginning of period

    6,762,704   $ 56.94  
 

Granted

    2,620,785   $ 76.24  
 

Exercised

    (306,688 ) $ 43.56  
 

Cancelled

    (116,250 ) $ 67.40  
               
 

Outstanding, end of period

    8,960,551   $ 62.91  
               
 

Options exercisable at end of period

    5,115,072   $ 59.40  
               
  • For the nine months ended September 30, 2011 and 2010, the Company estimated the fair value of options under the Black-Scholes option pricing model using the following weighted average assumptions:

   
  2011   2010  
 

Risk-free interest rate

    1.95%     1.86%  
 

Expected life of options (in years)

    2.5     2.5  
 

Expected volatility of the Company's share price

    34.63%     43.85%  
 

Expected dividend yield

    0.89%     0.42%  
AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES

7.     AVAILABLE-FOR-SALE SECURITIES

  • During the three months ended September 30, 2011, the Company received proceeds of nil (2010 — $11.1 million) from the sale of certain available-for-sale securities and recognized a gain before income taxes of nil (2010 — $7.8 million).

    During the nine months ended September 30, 2011, the Company received proceeds of $9.3 million (2010 — $11.6 million) from the sale of certain available-for-sale securities and recognized a gain before income taxes of $4.8 million (2010 — $8.2 million).

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

   
  September 30, 2011   December 31, 2010  
 

Available-for-sale securities in an unrealized gain position

             
 

Cost

  $ 89,477   $ 50,958  
 

Unrealized gains in accumulated other comprehensive income

    17,558     48,151  
             
 

Estimated fair value

    107,035     99,109  
             
 

Available-for-sale securities in an unrealized loss position

             
 

Cost

  $ 44,381      
 

Unrealized losses in accumulated other comprehensive income

    (3,455 )    
             
 

Estimated fair value

    40,926      
             
 

Total estimated fair value of available-for-sale securities

  $ 147,961   $ 99,109  
             
  • The Company's investments in available-for-sale securities consist primarily of investments in common shares of entities in the mining industry. At September 30, 2011 the pre-impairment fair value of investments in an unrealized loss position was $43.6 million with a total unrealized loss of $6.9 million. The Company evaluated the near-term prospects of the issuers in relation to the severity and duration of the impairment. As a result of that evaluation, the Company wrote down certain available-for-sale securities by $3.4 million for the three months ended September 30, 2011 that were considered other-than-temporarily impaired.

    For the remainder of the investments after the other-than-temporary impairment write-down, approximately 27.7% of the total fair value of investments are in an unrealized loss position. The Company also evaluated these securities in relation to the severity and duration (less than three months) of the impairment. Based on that evaluation and the Company's ability and intent to hold those investments for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company does not consider those investments to be other-than-temporarily impaired as at September 30, 2011.

LONG-TERM DEBT
LONG-TERM DEBT

8.     LONG-TERM DEBT

  • On August 4, 2011, the Company amended and restated its credit facilities. The total amount available under the credit facilities remains unchanged at $1.2 billion, however, the maturity date was extended from June 22, 2014 to June 22, 2016.

    During the three months ended September 30, 2011, the Company drew down $50.0 million, net, from the credit facilities (2010 — repaid $20.0 million). At September 30, 2011, the credit facilities were drawn down by $50.0 million (December 31, 2010 — $50.0 million).

    Total long-term debt interest costs incurred during the three and nine months ended September 30, 2011 was $10.7 million (2010 — $9.7 million) and $31.0 million (2010 — $29.5 million), respectively. Total interest costs capitalized to property, plant and mine development for the three and nine months ended September 30, 2011 was $0.6 million (2010 — nil) and $0.8 million (2010 — $4.6 million), respectively. The outstanding long-term debt balance as at September 30, 2011 relates to the notes entered into in April 2010 and the $50.0 million outstanding on the credit facilities.

FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS

9.     FINANCIAL INSTRUMENTS

  • In the first quarter of 2011, to mitigate the risks associated with fluctuating zinc prices, the Company entered into a zero-cost collar to hedge the price on a portion of zinc associated with the LaRonde Mine's 2011 production. The purchase of zinc put options has been financed through selling zinc call options at a higher level such that the net premium payable to the counterparty by the Company is nil.

    A total of 20,000 metric tonnes (2010 — 15,000 metric tonnes) of zinc call options were written at a strike price of $2,500 (2010 — $2,500) per metric tonne with 2,000 metric tonnes (2010 — 1,500 metric tonnes) expiring each month beginning February 28, 2011 (2010 — March 31, 2010). A total of 20,000 metric tonnes (2010 — 15,000 metric tonnes) of zinc put options were purchased at a strike price of $2,200 (2010 — $2,200) per metric tonne with 2,000 metric tonnes (2010 — 1,500 metric tonnes) expiring each month beginning February 28, 2011 (2010 — March 31, 2010). While setting a minimum price, the zero-cost collar strategy also limits participation to zinc prices above $2,500 (2010 — $2,500) per metric tonne. These contracts did not qualify for hedge accounting under ASC 815 — Derivatives and Hedging. Gains or losses, along with mark-to-market adjustments are recognized in the gain on derivative financial instruments component of the consolidated statements of income (loss) and comprehensive income (loss). The options that expired during the first quarter of 2011 and 2010 expired out of the money. The options that expired during the second quarter of 2011 resulted in a realized gain of $0.1 million (2010 — $1.3 million). The options that expired during the third quarter of 2011 resulted in a realized gain of $0.8 million (2010 — $0.8 million). As at September 30, 2011, the Company had an unrealized mark-to-market gain of $3.0 million (2010 — $0.4 million).

    The Company utilizes foreign exchange hedges to reduce the variability in expected future cash flows arising from changes in foreign currency exchange. The hedged items represent a portion of the Canadian dollar denominated cash outflows arising from Canadian dollar denominated expenditures in 2011 and 2012.

    As at September 30, 2011, forward contracts with an ineffective cash flow hedging relationship that did not qualify for hedge accounting, hedged $60 million of 2011 expenditures and nil of 2012 expenditures. $20 million will expire each month during the fourth quarter of 2011 at an average rate of US$1.00 = C$0.99. There were no similar foreign exchange forward contracts in the first nine months of 2010. The hedges that expired for the three and nine months ended September 30, 2011 resulted in a realized loss of $0.4 million and realized gain of $0.4 million, respectively. As of September 30, 2011 the Company recognized a mark-to-market loss of $4.3 million in the "Gain (loss) on derivative financial instruments" line item of the consolidated statements of income (loss) and comprehensive income (loss).

    As at September 30, 2011, forward contracts with a cash flow hedging relationship that did qualify for hedge accounting, hedged $60 million of 2011 expenditures and $240 million of 2012 expenditures. $20 million will expire each month during 2012 at an average rate of US$1.00 = C$0.99. There were no similar effective foreign exchange forward contracts in the first nine months of 2010. No effective hedges expired for the three and nine months ended September 30, 2011. As of September 30, 2011, the Company recognized a mark-to-market loss of $16.0 million in accumulated other comprehensive income (loss). Amounts deferred in accumulated other comprehensive income (loss) are reclassified to Production expenses, as applicable, when the hedged transaction has occurred.

    The Company's other foreign currency derivative strategies in 2011 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 period-end such that no derivatives were outstanding on September 30, 2011. The Company's foreign currency derivative strategy generated $1.3 million (2010 — $1.3 million) in call option premiums for the quarter ended September 30, 2011 that were recognized in the "Gain (loss) on derivative financial instruments" line item of the consolidated statements of income (loss) and comprehensive income (loss).

    In addition, the Company recognized a gain of nil on intra-quarter silver financial instruments associated with timing of sales of silver products during the third quarter of 2011. For the nine months ended September 30, 2011, the Company recognized a loss of $3.4 million on intra-quarter silver financial instruments 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 silver financial instruments purchased/outstanding during the nine months ended September 30, 2010.

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

10.   COMMITMENTS, CONTINGENCIES, AND GUARANTEES

  • As part of its ongoing business and operations, the Company has been required to provide assurance in the form of letters of credit for environmental and site restoration costs, custom credits, government grants and other general corporate purposes. As at September 30, 2011, the total amount of these guarantees was $119.2 million.

SEGMENTED INFORMATION
SEGMENTED INFORMATION

11.   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 Chief Operating Officer, and that represent more than 10% of the combined revenue, profit or loss or total assets of all reported operating segments. The following are the reporting segments of the Company and reflect how the Company manages its business and how it classifies its operations for planning and measuring performance:

  Canada:   LaRonde Mine, Lapa Mine, Goldex Mine, Meadowbank Mine and the Regional Office
  Europe:   Kittila Mine
  Latin America:   Pinos Altos Mine and the Creston Mascota deposit at Pinos Altos
  Exploration:   USA Exploration office, Europe Exploration office, Canada Exploration office, Meliadine Mine Project and the Latin America Exploration office
  • The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies. There are no transactions between the reported segments affecting revenue. Production costs for the reported segments are net of intercompany transactions. The goodwill of $200.1 million on the consolidated balance sheets relates to the Meliadine Mine Project that is a component of the Exploration segment.

    Corporate Head Office assets are included in the Canada category and specific corporate income and expense items are noted separately below.

    The Meadowbank Mine achieved commercial production on March 1, 2010. The Creston Mascota deposit at Pinos Altos achieved commercial production on March 1, 2011.

 
Three Months Ended September 30, 2011
  Revenues
from
Mining
Operations
  Production
Costs
  Amortization   Exploration
& Corporate
Development
  Foreign
Currency
Translation
Gain
  Loss on
Goldex Mine
  Segment
Income
Gain
(Loss)
 
 

Canada

  $ 352,514   $ 169,243   $ 50,133   $   $ (12,581 ) $ 298,183   $ (152,464 )
 

Europe

    62,165     27,648     6,939         (2,355 )       29,933  
 

Latin America

    105,858     40,299     10,032         (5,770 )       61,297  
 

Exploration

                9,610     (714 )       (8,896 )
                                 
 

 

  $ 520,537   $ 237,190   $ 67,104   $ 9,610   $ (21,420 ) $ 298,183   $ (70,130 )
                                 
 

Segment income

  $ (70,130 )
 

Corporate and Other (Loss)

                                           
 

    Interest and sundry loss

    (46 )
 

    Loss on sale and write-down of available-for-sale securities

    (3,402 )
 

    Loss on derivative financial instruments

    (1,678 )
 

    General and administrative expenses

    (20,410 )
 

    Interest expense

    (14,918 )
                                             
 

Loss before income, mining and federal capital taxes

  $ (110,584 )
                                             

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

Canada

  $ 303,463   $ 144,084   $ 36,731   $   $ 12,186   $ 110,462  
 

Europe

    51,225     24,155     6,241         4,793     16,036  
 

Latin America

    43,790     28,435     5,173         706     9,476  
 

Exploration

                19,491         (19,491 )
                             
 

 

  $ 398,478   $ 196,674   $ 48,145   $ 19,491   $ 17,685   $ 116,483  
                             
 

Segment income

  $ 116,483  
 

Corporate and Other Income (Loss)

                                     
 

    Interest and sundry income

    1,784  
 

    Gain on sale of available-for-sale securities

    7,839  
 

    Loss on derivative financial instruments

    (1,330 )
 

    Net gain on acquisition of assets

    57,526  
 

    Gain on sale of mining property

    8,888  
 

    General and administrative expenses

    (19,925 )
 

    Provincial capital tax

    6,934  
 

    Interest expense

    (14,722 )
                                       
 

Income before income, mining and federal capital taxes

  $ 163,477  
                                       

 
Nine Months Ended September 30, 2011
  Revenues
from
Mining
Operations
  Production
Costs
  Amortization   Exploration
& Corporate
Development
  Foreign
Currency
Translation
(Gain)
Loss
  Loss on
Goldex Mine
  Segment
Income
Gain
(Loss)
 
 

Canada

  $ 928,228   $ 456,634   $ 143,104   $   $ (893 ) $ 298,183   $ 31,200  
 

Europe

    163,391     82,340     19,716         1,432         59,903  
 

Latin America

    274,677     109,537     25,448         (5,101 )       144,793  
 

Exploration

                43,877     (80 )       (43,797 )
                                 
 

 

  $ 1,366,296   $ 648,511   $ 188,268   $ 43,877   $ (4,642 ) $ 298,183   $ 192,099  
                                 
 

Segment income

  $ 192,099  
 

Corporate and Other Income (Loss)

                                     
 

    Interest and sundry loss

    (22 )
 

    Gain on sale and write-down of available-for-sale securities

    1,412  
 

    Gain on derivative financial instruments

    654  
 

    General and administrative expenses

    (79,684 )
 

    Interest expense

    (42,915 )
                                             
 

Income before income, mining and federal capital taxes

  $ 71,544  
                                             

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

Canada

  $ 751,646   $ 355,672   $ 90,180   $   $ 8,509   $ 297,285  
 

Europe

    120,438     65,110     19,531         106     35,691  
 

Latin America

    111,433     60,692     12,940         544     37,257  
 

Exploration

                39,950         (39,950 )
                             
 

 

  $ 983,517   $ 481,474   $ 122,651   $ 39,950   $ 9,159   $ 330,283  
                             
 

Segment income

  $ 330,283  
 

Corporate and Other Income (Loss)

                                     
 

    Interest and sundry income

    3,943  
 

    Gain on sale of available-for-sale securities

    8,185  
 

    Gain on derivative financial instruments

    3,826  
 

    Net gain on acquisition of assets

    57,526  
 

    Gain on sale of mineral property

    8,888  
 

    General and administrative expenses

    (71,595 )
 

    Provincial capital tax

    6,779  
 

    Interest expense

    (34,535 )
                                       
 

Income before income, mining and federal capital taxes

  $ 313,300  
                                       

   
  Total Assets as at  
   
  September 30, 2011   December 31, 2010  
 

Canada

  $ 3,837,263   $ 4,172,997  
 

Europe

    741,293     679,258  
 

Mexico

    671,677     619,263  
 

Exploration

    293,818     28,833  
             
 

 

  $ 5,544,051   $ 5,500,351  
             
GENERAL AND ADMINISTRATIVE
GENERAL AND ADMINISTRATIVE

12.   GENERAL AND ADMINISTRATIVE

  • Due to a kitchen fire at the Meadowbank Mine in March 2011, the Company recognized, during the three months ended March 31, 2011, a loss on disposal of the kitchen of $6.9 million, and incurred related costs of $5.3 million, and also recognized an insurance receivable for $9.1 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) during the first quarter of 2011. The Company's exposure to insurance losses related to this claim is limited to the $3.1 million exposure through its captive insurance company. An insurance receivable was recognized (net of $2.0 million of insurance proceeds received during the third quarter of 2011) for the full amount, including any additional reimbursable costs incurred in subsequent periods, and there was no impact on the "General and administrative" line item of the consolidated statements of income (loss) and comprehensive income (loss) during the second or third quarter of 2011.

LOSS ON GOLDEX MINE
LOSS ON GOLDEX MINE

13.   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 appears that a weak volcanic rock unit in the hanging wall of the Goldex Mine deposit has failed. This rock failure is thought to extend between the top of the deposit and surface. As a result, this structure has allowed ground water to flow into the mine. This water flow has likely contributed to further weakening and movement of the rock mass.

    The mill processed feed from the remaining surface stockpile in October.

    As the conditions resulting in the decision to suspend mining operations existed as at September 30, 2011, Agnico-Eagle has written off its investment in the Goldex Mine (net of expected residual value), has written off the underground ore stockpile, and has made an asset retirement obligation provision for the anticipated costs of remediation in the third quarter of 2011. 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 at September 30, 2011 is equal to the residual value. All of the remaining 1.6 million ounces of proven and probable gold reserves at the Goldex Mine, other than the ore stockpiled on surface, will be reclassified as mineral resources. The Goldex Mine is part of the "Canada" segment as shown in Note 11.

   
   
 
 

Loss on Goldex Mine property, plant, and mine development

  $ 237,142  
 

Loss on underground ore stockpile

    16,641  
 

Increase in asset retirement obligation

    44,400  
         
 

Loss on Goldex Mine (before income and mining taxes)

    298,183  
 

Income and mining taxes

    (104,370 )
         
 

Loss on Goldex Mine (after income and mining taxes)

  $ 193,813  
         
  • The asset retirement obligation provision for the anticipated costs of remediation associated with the Company's Goldex Mine requires 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.

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

14.   SUBSEQUENT EVENTS

  • On October 13, 2011, the Company formally commenced its previously announced take-over bid (the "Offer") to acquire all of the outstanding common shares of Grayd Resource Corporation ("Grayd") at a price of C$2.80 per share. The transaction is valued at approximately C$275 million on a fully-diluted basis. Grayd shareholders will be entitled to receive, at their option, for each Grayd share they own, either C$2.80 in cash or 0.04039 of an Agnico-Eagle share and C$0.05 in cash, in each case subject to pro ration. The maximum amount of cash payable by Agnico-Eagle under the Offer will be equal to two-thirds of the total consideration (approximately C$183 million). The maximum number of shares issuable by Agnico-Eagle under the Offer will be approximately 2.7 million. The Offer is open for acceptance until November 18, 2011.

    In addition, a class action lawsuit was filed in the United States District Court for the Southern District of New York on November 7, 2011 against the Company and certain of its officers and a former officer seeking damages based on alleged violations of Sections 10(b) and 20(a) of the United States Securities Exchange Act of 1934 arising from the announcement by the Company on October 19, 2011 of a decision to suspend operations at its Goldex Mine. The Company believes the action to be without merit and intends to vigorously defend the action.

COMPARATIVE FIGURES
COMPARATIVE FIGURES

15.   COMPARATIVE FIGURES

  • Certain figures in the comparative consolidated financial statements have been reclassified from statements previously presented to conform to the presentation of the 2011 interim consolidated financial statements.

ACCOUNTING POLICIES (Policies)

Fair Value Accounting

In January 2010, the Financial Accounting Standards Board ("FASB") guidance for fair value measurements and disclosures was updated to require additional disclosures. The updated guidance was effective for the Company's fiscal year beginning January 1, 2010, with the exception of the Level 3 disaggregation which was effective for the Company's fiscal year beginning January 1, 2011. Adoption of this updated guidance had no impact on the Company's financial position, results of operation or cash flows. See Note 4 for details regarding the Company's assets and liabilities measured at fair value.

Business Combinations

In December 2010, the Accounting Standards Codification ("ASC") guidance for business combinations was updated to clarify existing guidance which requires a public entity to disclose pro forma revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year had occurred as of the beginning of the comparable prior annual period only. The update also expands the supplemental pro forma disclosures required to include a description of the nature and amount of material, non-recurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. Adoption of this updated guidance, effective for the Company's fiscal year beginning January 1, 2011, had no impact on the Company's financial position, results of operations or cash flows.

Revenue Recognition — Multiple-Deliverable Revenue Arrangements

In October 2009, the FASB issued an amendment to its guidance on multiple - deliverable revenue arrangements which is effective for fiscal years beginning on or after June 15, 2010. This updated guidance addresses accounting and reporting for arrangements under which the vendor will perform multiple revenue - generating activities, including how to separate deliverables and measure and allocate the arrangement consideration. This amendment also significantly expands the disclosure requirements related to a vendor's multiple-deliverable revenue arrangement. Based on the Company's assessment, these changes did not have an impact on its current accounting for revenue or required disclosures.

FAIR VALUE MEASUREMENT (Tables)
Schedule of assets and liabilities that are measured at fair value on a recurring basis
  •  

   
  Total   Level 1   Level 2   Level 3  
 

Financial assets:

                         
 

Cash equivalents, and short-term investments(1)

  $ 7,212   $   $ 7,212   $  
 

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

    147,961     145,228     2,733      
 

Trade receivables(4)

    78,779         78,779      
 

Derivative assets(3)

                 
                     
 

 

  $ 233,952   $ 145,228   $ 88,724   $  
                     
 

Financial liabilities:

                         
 

Derivative liabilities(3)

  $ 17,308   $   $ 17,308   $  
                     


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

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

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

    (4)
    Trade receivables from provisional invoices for concentrate sales are included within Level 2 as they are valued using quoted forward rates derived from observable market data on the month of expected settlement.
SHAREHOLDERS' EQUITY (Tables)
  • The following table presents the maximum number of common shares that would be outstanding if all instruments outstanding at September 30, 2011 were exercised:

 

Common shares outstanding at September 30, 2011

    169,377,973  
 

Employees' stock options

    8,960,551  
 

Warrants

    8,600,000  
 

Restricted share unit plan

    50,391  
         
 

 

    186,988,915  
         
  • The following table illustrates the changes in common shares outstanding for the nine months ended September 30, 2011:

   
  # of Shares   $ Amount  
 

Common shares outstanding, beginning of period

    168,720,355     3,078,217  
 

Shares issued under Employee Stock Option Plan

    306,688     16,972  
 

Shares issued under Incentive Share Purchase Plan

    223,191     14,238  
 

Shares issued under Dividend Reinvestment Plan

    134,990     8,494  
 

Restricted share unit plan

    (7,251 )   (854 )
             
 

Common shares outstanding, end of period

    169,377,973     3,117,067  
             
  •  

   
  Three months ended
September 30,
  Nine months ended
September 30,
 
   
  2011   2010   2011   2010  
 

Net income (loss)

  $ (81,614 ) $ 121,461   $ 32,475   $ 244,153  
                     
 

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

    169,238     167,461     169,055     160,353  
   

Add: Dilutive impact of employee stock options

        1,131     1,094     1,131  
   

Dilutive impact of warrants

        2,040     2,447     1,811  
   

Dilutive impact of treasury shares related to restricted share unit plan

        47     50     47  
                     
 

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

    169,238     170,679     172,646     163,342  
                     
 

Net income (loss) per share — basic

  $ (0.48 ) $ 0.73   $ 0.19   $ 1.52  
                     
 

Net income (loss) per share — diluted

  $ (0.48 ) $ 0.71   $ 0.19   $ 1.49  
                     
STOCK-BASED COMPENSATION (Tables)

   
  Nine months ended
September 30, 2011
 
   
  # of Options   Weighted average
exercise price
 
   
   
  (C$)
 
 

Outstanding, beginning of period

    6,762,704   $ 56.94  
 

Granted

    2,620,785   $ 76.24  
 

Exercised

    (306,688 ) $ 43.56  
 

Cancelled

    (116,250 ) $ 67.40  
               
 

Outstanding, end of period

    8,960,551   $ 62.91  
               
 

Options exercisable at end of period

    5,115,072   $ 59.40  
               
  •  

   
  2011   2010  
 

Risk-free interest rate

    1.95%     1.86%  
 

Expected life of options (in years)

    2.5     2.5  
 

Expected volatility of the Company's share price

    34.63%     43.85%  
 

Expected dividend yield

    0.89%     0.42%  
AVAILABLE-FOR-SALE SECURITIES (Tables)
Available-for-sale securities roll forward from cost to fair value
  •  

   
  September 30, 2011   December 31, 2010  
 

Available-for-sale securities in an unrealized gain position

             
 

Cost

  $ 89,477   $ 50,958  
 

Unrealized gains in accumulated other comprehensive income

    17,558     48,151  
             
 

Estimated fair value

    107,035     99,109  
             
 

Available-for-sale securities in an unrealized loss position

             
 

Cost

  $ 44,381      
 

Unrealized losses in accumulated other comprehensive income

    (3,455 )    
             
 

Estimated fair value

    40,926      
             
 

Total estimated fair value of available-for-sale securities

  $ 147,961   $ 99,109  
             
SEGMENTED INFORMATION (Tables)
  •  

 
Three Months Ended September 30, 2011
  Revenues
from
Mining
Operations
  Production
Costs
  Amortization   Exploration
& Corporate
Development
  Foreign
Currency
Translation
Gain
  Loss on
Goldex Mine
  Segment
Income
Gain
(Loss)
 
 

Canada

  $ 352,514   $ 169,243   $ 50,133   $   $ (12,581 ) $ 298,183   $ (152,464 )
 

Europe

    62,165     27,648     6,939         (2,355 )       29,933  
 

Latin America

    105,858     40,299     10,032         (5,770 )       61,297  
 

Exploration

                9,610     (714 )       (8,896 )
                                 
 

 

  $ 520,537   $ 237,190   $ 67,104   $ 9,610   $ (21,420 ) $ 298,183   $ (70,130 )
                                 
 

Segment income

  $ (70,130 )
 

Corporate and Other (Loss)

                                           
 

    Interest and sundry loss

    (46 )
 

    Loss on sale and write-down of available-for-sale securities

    (3,402 )
 

    Loss on derivative financial instruments

    (1,678 )
 

    General and administrative expenses

    (20,410 )
 

    Interest expense

    (14,918 )
                                             
 

Loss before income, mining and federal capital taxes

  $ (110,584 )
                                             

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

Canada

  $ 303,463   $ 144,084   $ 36,731   $   $ 12,186   $ 110,462  
 

Europe

    51,225     24,155     6,241         4,793     16,036  
 

Latin America

    43,790     28,435     5,173         706     9,476  
 

Exploration

                19,491         (19,491 )
                             
 

 

  $ 398,478   $ 196,674   $ 48,145   $ 19,491   $ 17,685   $ 116,483  
                             
 

Segment income

  $ 116,483  
 

Corporate and Other Income (Loss)

                                     
 

    Interest and sundry income

    1,784  
 

    Gain on sale of available-for-sale securities

    7,839  
 

    Loss on derivative financial instruments

    (1,330 )
 

    Net gain on acquisition of assets

    57,526  
 

    Gain on sale of mining property

    8,888  
 

    General and administrative expenses

    (19,925 )
 

    Provincial capital tax

    6,934  
 

    Interest expense

    (14,722 )
                                       
 

Income before income, mining and federal capital taxes

  $ 163,477  
                                       

 
Nine Months Ended September 30, 2011
  Revenues
from
Mining
Operations
  Production
Costs
  Amortization   Exploration
& Corporate
Development
  Foreign
Currency
Translation
(Gain)
Loss
  Loss on
Goldex Mine
  Segment
Income
Gain
(Loss)
 
 

Canada

  $ 928,228   $ 456,634   $ 143,104   $   $ (893 ) $ 298,183   $ 31,200  
 

Europe

    163,391     82,340     19,716         1,432         59,903  
 

Latin America

    274,677     109,537     25,448         (5,101 )       144,793  
 

Exploration

                43,877     (80 )       (43,797 )
                                 
 

 

  $ 1,366,296   $ 648,511   $ 188,268   $ 43,877   $ (4,642 ) $ 298,183   $ 192,099  
                                 
 

Segment income

  $ 192,099  
 

Corporate and Other Income (Loss)

                                     
 

    Interest and sundry loss

    (22 )
 

    Gain on sale and write-down of available-for-sale securities

    1,412  
 

    Gain on derivative financial instruments

    654  
 

    General and administrative expenses

    (79,684 )
 

    Interest expense

    (42,915 )
                                             
 

Income before income, mining and federal capital taxes

  $ 71,544  
                                             

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

Canada

  $ 751,646   $ 355,672   $ 90,180   $   $ 8,509   $ 297,285  
 

Europe

    120,438     65,110     19,531         106     35,691  
 

Latin America

    111,433     60,692     12,940         544     37,257  
 

Exploration

                39,950         (39,950 )
                             
 

 

  $ 983,517   $ 481,474   $ 122,651   $ 39,950   $ 9,159   $ 330,283  
                             
 

Segment income

  $ 330,283  
 

Corporate and Other Income (Loss)

                                     
 

    Interest and sundry income

    3,943  
 

    Gain on sale of available-for-sale securities

    8,185  
 

    Gain on derivative financial instruments

    3,826  
 

    Net gain on acquisition of assets

    57,526  
 

    Gain on sale of mineral property

    8,888  
 

    General and administrative expenses

    (71,595 )
 

    Provincial capital tax

    6,779  
 

    Interest expense

    (34,535 )
                                       
 

Income before income, mining and federal capital taxes

  $ 313,300  
                                       

   
  Total Assets as at  
   
  September 30, 2011   December 31, 2010  
 

Canada

  $ 3,837,263   $ 4,172,997  
 

Europe

    741,293     679,258  
 

Mexico

    671,677     619,263  
 

Exploration

    293,818     28,833  
             
 

 

  $ 5,544,051   $ 5,500,351  
             
LOSS ON GOLDEX MINE (Tables)
Schedule of loss on Goldex Mine
  •  

   
   
 
 

Loss on Goldex Mine property, plant, and mine development

  $ 237,142  
 

Loss on underground ore stockpile

    16,641  
 

Increase in asset retirement obligation

    44,400  
         
 

Loss on Goldex Mine (before income and mining taxes)

    298,183  
 

Income and mining taxes

    (104,370 )
         
 

Loss on Goldex Mine (after income and mining taxes)

  $ 193,813  
         
FAIR VALUE MEASUREMENT (Details) (Fair value measured on recurring basis, USD $)
In Thousands
Sep. 30, 2011
Total
 
Financial assets:
 
Cash equivalents, short-term investments
$ 7,212 
Available-for-sale securities
147,961 
Trade receivables
78,779 
Total financial assets
233,952 
Financial liabilities:
 
Derivative liabilities
17,308 
Level 1
 
Financial assets:
 
Available-for-sale securities
145,228 
Total financial assets
145,228 
Level 2
 
Financial assets:
 
Cash equivalents, short-term investments
7,212 
Available-for-sale securities
2,733 
Trade receivables
78,779 
Total financial assets
88,724 
Financial liabilities:
 
Derivative liabilities
$ 17,308 
SHAREHOLDERS' EQUITY (Details)
3 Months Ended
Sep. 30,
3 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
2011
USD ($)
2011
CAD ($)
3 Months Ended
Mar. 31, 2011
USD ($)
frequency
2010
USD ($)
2010
CAD ($)
3 Months Ended
Mar. 31, 2010
USD ($)
frequency
2011
USD ($)
2011
CAD ($)
2010
USD ($)
2010
CAD ($)
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
 
Amount transferred to an employee benefit trust to fund restricted share unit plan
 
 
$ 3,700,000 
 
 
$ 4,000,000 
 
 
 
 
Number of times per year the employee benefit trust is funded (in times per year)
 
 
 
 
 
 
 
 
Common shares outstanding at September 30, 2011 (in shares)
169,377,973 
169,377,973 
 
 
 
 
169,377,973 
169,377,973 
 
 
Employees' stock options (in shares)
8,960,551 
8,960,551 
 
 
 
 
8,960,551 
8,960,551 
 
 
Warrants (in shares)
8,600,000 
8,600,000 
 
 
 
 
8,600,000 
8,600,000 
 
 
Restricted share unit plan (in shares)
50,391 
50,391 
 
 
 
 
50,391 
50,391 
 
 
Maximum number of common shares (in shares)
186,988,915 
186,988,915 
 
 
 
 
186,988,915 
186,988,915 
 
 
Stock options granted (in shares)
27,000 
27,000 
 
116,000 
116,000 
 
2,620,785 
2,620,785 
2,911,080 
2,911,080 
Stock options granted - Weighted average exercise price (in Canadian dollars per share)
 
$ 55.25 
 
 
$ 66.26 
 
 
$ 76.24 
 
$ 57.42 
Stock options, weighted average exercised (in shares)
89,300 
89,300 
 
387,725 
387,725 
 
306,688 
306,688 
673,098 
673,098 
Cash received from exercise of stock options (in U.S. dollars)
4,600,000 
 
 
17,100,000 
 
 
13,500,000 
 
26,600,000 
 
Stock options cancelled (in shares)
24,500 
24,500 
 
143,750 
143,750 
 
116,250 
116,250 
196,800 
196,800 
Stock options cancelled - weighted-average exercise price (in Canadian dollars per share)
 
$ 69.37 
 
 
$ 58.63 
 
 
$ 67.40 
 
$ 57.84 
Changes in Common Shares outstanding
 
 
 
 
 
 
 
 
 
 
Common shares outstanding, beginning of period (in shares)
 
 
168,720,355 
 
 
 
168,720,355 
168,720,355 
 
 
Common shares, beginning of period, (in U.S. dollars)
 
 
3,078,217,000 
 
 
 
3,078,217,000 
 
 
 
Shares issued under Employee Stock Option Plan, (in U.S. dollars)
 
 
 
 
 
 
16,972,000 
 
 
 
Shares issued under Employee Stock Option Plan (in shares)
 
 
 
 
 
 
306,688 
306,688 
 
 
Shares issued under Incentive Share Purchase Plan, (in U.S. dollars)
 
 
 
 
 
 
14,238,000 
 
 
 
Shares issued under Incentive Share Purchase Plan (in shares)
 
 
 
 
 
 
223,191 
223,191 
 
 
Shares issued under Dividend Reinvestment Plan, (in U.S. dollars)
 
 
 
 
 
 
8,494,000 
 
 
 
Shares issued under Dividend Reinvestment Plan (in shares)
 
 
 
 
 
 
134,990 
134,990 
 
 
Restricted share unit plan, amount (in U.S. dollars)
 
 
 
 
 
 
(854,000)
 
 
 
Restricted share unit plan (in shares)
 
 
 
 
 
 
(7,251)
(7,251)
 
 
Common shares, end of period, (in U.S. dollars)
3,117,067,000 
 
 
 
 
 
3,117,067,000 
 
 
 
Common shares outstanding, end of period (in shares)
169,377,973 
169,377,973 
 
 
 
 
169,377,973 
169,377,973 
 
 
Net income per share
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$ (81,614,000)
 
 
$ 121,461,000 
 
 
$ 32,475,000 
 
$ 244,153,000 
 
Weighted average number of common shares outstanding - basic (in shares)
169,238,000 
169,238,000 
 
167,461,000 
167,461,000 
 
169,055,000 
169,055,000 
160,353,000 
160,353,000 
Add : Dilutive impact of employee stock options (in shares)
 
 
 
1,131,000 
1,131,000 
 
1,094,000 
1,094,000 
1,131,000 
1,131,000 
Dilutive impact of warrants (in shares)
 
 
 
2,040,000 
2,040,000 
 
2,447,000 
2,447,000 
1,811,000 
1,811,000 
Dilutive impact of treasury shares related to restricted share unit plan (in shares)
 
 
 
47,000 
47,000 
 
50,000 
50,000 
47,000 
47,000 
Weighted average number of common shares outstanding - diluted (in shares)
169,238,000 
169,238,000 
 
170,679,000 
170,679,000 
 
172,646,000 
172,646,000 
163,342,000 
163,342,000 
Net income (loss) per share - basic (in dollars per share)
$ (0.48)
 
 
$ 0.73 
 
 
$ 0.19 
 
$ 1.52 
 
Net income (loss) per share - diluted (in dollars per share)
$ (0.48)
 
 
$ 0.71 
 
 
$ 0.19 
 
$ 1.49 
 
Employee stock options excluded from the computation of diluted weighted average common shares (in shares)
 
 
 
1,033,525 
1,033,525 
 
738,321 
738,321 
1,033,525 
1,033,525 
STOCK-BASED COMPENSATION (Details)
3 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
2011
CAD ($)
2010
CAD ($)
2011
CAD ($)
2010
CAD ($)
2011
Stock options
CAD ($)
year
2010
Stock options
year
Stock options activity
 
 
 
 
 
 
Options outstanding, beginning of year (in shares)
 
 
 
 
6,762,704 
 
Options granted (in shares)
27,000 
116,000 
2,620,785 
2,911,080 
2,620,785 
 
Options exercised (in shares)
(89,300)
(387,725)
(306,688)
(673,098)
(306,688)
 
Options cancelled (in shares)
(24,500)
(143,750)
(116,250)
(196,800)
(116,250)
 
Options outstanding, end of year (in shares)
8,960,551 
 
8,960,551 
 
8,960,551 
 
Options exercisable at end of period (in shares)
 
 
 
 
5,115,072 
 
Weighted average exercise price
 
 
 
 
 
 
Outstanding, beginning of year, weighted average exercise price (in Canadian dollars per share)
 
 
 
 
$ 56.94 
 
Granted, weighted average exercise price (in Canadian dollars per share)
$ 55.25 
$ 66.26 
$ 76.24 
$ 57.42 
$ 76.24 
 
Exercised, weighted average exercise price (in Canadian dollars per share)
 
 
 
 
$ 43.56 
 
Cancelled, weighted average exercise price (in Canadian dollars per share)
 
 
 
 
$ 67.40 
 
Outstanding, end of year, weighted average exercise price (in Canadian dollars per share)
 
 
 
 
$ 62.91 
 
Options exercisable at end of period (in Canadian dollars per share)
 
 
 
 
$ 59.40 
 
Fair value of options weighted average assumptions:
 
 
 
 
 
 
Pricing model used for valuation of options
 
 
 
 
Black Scholes 
Black Scholes 
Risk-free interest rate (as a percent)
 
 
 
 
1.95% 
1.86% 
Expected life of options (in years)
 
 
 
 
2.5 
2.5 
Expected volatility of the Company's share price (as a percent)
 
 
 
 
34.63% 
43.85% 
Expected dividend yield (as a percent)
 
 
 
 
0.89% 
0.42% 
AVAILABLE-FOR-SALE SECURITIES (Details) (USD $)
3 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
2011
2010
2011
2010
Dec. 31, 2010
AVAILABLE-FOR-SALE SECURITIES
 
 
 
 
 
Proceeds from sale of available-for-sale securities
 
$ 11,100,000 
$ 9,300,000 
$ 11,600,000 
 
Gain on sale of available-for-sale securities
(3,402,000)
7,839,000 
1,412,000 
8,185,000 
 
Schedule of Available-for-sale Securities
 
 
 
 
 
Estimated fair value
147,961,000 
 
147,961,000 
 
99,109,000 
Available-for-sale securities in an unrealized gain position
 
 
 
 
 
Schedule of Available-for-sale Securities
 
 
 
 
 
Cost
89,477,000 
 
89,477,000 
 
50,958,000 
Unrealized gains (losses) in accumulated other comprehensive income
17,558,000 
 
17,558,000 
 
48,151,000 
Estimated fair value
107,035,000 
 
107,035,000 
 
99,109,000 
Available-for-sale securities in an unrealized loss position
 
 
 
 
 
Schedule of Available-for-sale Securities
 
 
 
 
 
Cost
44,381,000 
 
44,381,000 
 
 
Unrealized gains (losses) in accumulated other comprehensive income
(3,455,000)
 
(3,455,000)
 
 
Estimated fair value
40,926,000 
 
40,926,000 
 
 
Maximum duration of impairment for investments in available-for-sale securities (in months)
 
 
 
 
Fair value of investments in an unrealized loss position
43,600,000 
 
43,600,000 
 
 
Total unrealized loss
6,900,000 
 
6,900,000 
 
 
Investment written down
$ 3,400,000 
 
 
 
 
Percentage of total fair value of investments in unrealized loss position
27.70% 
 
27.70% 
 
 
LONG-TERM DEBT (Details) (USD $)
3 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
3 Months Ended
Sep. 30,
2011
2010
2011
2010
2011
Credit Facilities
2010
Credit Facilities
Aug. 4, 2011
Credit Facilities
Dec. 31, 2010
Credit Facilities
Debt instrument
 
 
 
 
 
 
 
 
Maximum borrowing capacity of line of credit
 
 
 
 
 
 
$ 1,200,000,000 
 
Amount repaid of the credit facility during the period
 
 
 
 
50,000,000 
(20,000,000)
 
 
Amount drawn down on the credit facility
 
 
 
 
50,000,000 
 
 
50,000,000 
Long-term debt interest costs
10,700,000 
9,700,000 
31,000,000 
29,500,000 
 
 
 
 
Interest costs capitalized for property, plant and mine development
$ 600,000 
 
$ 800,000 
$ 4,600,000 
 
 
 
 
FINANCIAL INSTRUMENTS (Details)
3 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
3 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
2011
USD ($)
2010
USD ($)
2011
USD ($)
2010
USD ($)
2011
Designated as hedges
Foreign exchange forward contract
USD ($)
Sep. 30, 2011
Designated as hedges
Foreign exchange forward contract
CAD ($)
3 Months Ended
Sep. 30, 2011
Not designated as hedges
Foreign exchange forward contract
USD ($)
9 Months Ended
Sep. 30, 2011
Not designated as hedges
Foreign exchange forward contract
USD ($)
Sep. 30, 2011
Not designated as hedges
Foreign exchange forward contract
CAD ($)
Sep. 30, 2011
Call Options Written
USD ($)
Sep. 30, 2010
Call Options Written
USD ($)
2011
Call Options Written
Zinc
MT
usdperMT
2010
Call Options Written
Zinc
MT
usdperMT
2011
Put options purchased
Zinc
MT
usdperMT
2010
Put options purchased
Zinc
MT
usdperMT
2011
Foreign exchange forward contract
USD ($)
2011
Zinc
USD ($)
usdperMT
3 Months Ended
Jun. 30, 2011
Zinc
USD ($)
3 Months Ended
Sep. 30, 2010
Zinc
USD ($)
usdperMT
4 Months Ended
Jul. 31, 2010
Zinc
USD ($)
2011
Zinc
USD ($)
usdperMT
2010
Zinc
USD ($)
usdperMT
2011
Silver
USD ($)
Derivative
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Zinc options (in metric tonnes)
 
 
 
 
 
 
 
 
 
 
 
20,000 
15,000 
20,000 
15,000 
 
 
 
 
 
 
 
 
Strike price for option (in dollars per metric tonne)
 
 
 
 
 
 
 
 
 
 
 
2,500 
2,500 
2,200 
2,200 
 
 
 
 
 
 
 
 
Options expiring each month, beginning from February 28 (2011) or March 31 (2010) (in metric tonnes)
 
 
 
 
 
 
 
 
 
 
 
2,000 
1,500 
2,000 
1,500 
 
 
 
 
 
 
 
 
Limit for participation, zinc prices set by zero-cost collar strategy (per metric tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2,500 
 
2,500 
 
2,500 
2,500 
 
Gain (Loss) on derivative financial instruments
$ (1,678,000)
$ (1,330,000)
$ 654,000 
$ 3,826,000 
 
 
$ (400,000)
$ 400,000 
 
 
 
 
 
 
 
 
$ 800,000 
$ 100,000 
$ 800,000 
$ 1,300,000 
 
 
 
Unrealized mark-to-market gain
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
43,000,000 
 
 
 
 
3,000,000 
400,000 
 
Exchange rate under foreign exchange forward contract (in CAD per US dollar)
 
 
 
 
 
0.99 
 
 
0.99 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of expenditures hedged
 
 
 
 
60,000,000 
 
60,000,000 
60,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of future expenditures hedged
 
 
 
 
240,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of expenditures hedged, expiring each month
 
 
 
 
20,000,000 
 
20,000,000 
20,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Call option premiums generated
 
 
 
 
 
 
 
 
 
1,300,000 
1,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (loss) recognized in consolidated statement of income and comprehensive income
 
 
 
 
$ (16,000,000)
 
 
$ (4,300,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ (3,400,000)
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) (USD $)
In Millions
Sep. 30, 2011
COMMITMENTS, CONTINGENCIES, AND GUARANTEES
 
Guarantees provided in the form of letters of credit
$ 119.2 
SEGMENTED INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30,
9 Months Ended
Sep. 30,
2011
2010
2011
2010
Dec. 31, 2010
SEGMENTED INFORMATION
 
 
 
 
 
Minimum required percentage of combined revenue, profit or loss or total assets of reported operating segments
10.00% 
 
10.00% 
 
 
Segment reporting Information
 
 
 
 
 
Goodwill
$ 200,064 
 
$ 200,064 
 
$ 200,064 
Revenues from Mining Operations
520,537 
398,478 
1,366,296 
983,517 
 
Production Costs
237,190 
196,674 
648,511 
481,474 
 
Amortization
67,104 
48,145 
188,268 
122,651 
 
Exploration and Corporate Development
9,610 
19,491 
43,877 
39,950 
 
Foreign currency translation loss (gain)
(21,420)
17,685 
(4,642)
9,159 
 
Segment Income Gain (Loss)
(70,130)
116,483 
192,099 
330,283 
 
Interest and sundry income (loss)
(46)
1,784 
(22)
3,943 
 
Goldex write-off
298,183 
 
298,183 
 
 
Gain on sale of available-for-sale securities
(3,402)
7,839 
1,412 
8,185 
 
Gain (Loss) on derivative financial instruments
(1,678)
(1,330)
654 
3,826 
 
Net gain on acquisition of assets
 
57,526 
 
 
 
Gain on sale of mining property
 
8,888 
 
8,888 
 
General and administrative expenses
(20,410)
(19,925)
(79,684)
(71,595)
 
Provincial capital tax
 
6,934 
 
6,779 
 
Interest expense
(14,918)
(14,722)
(42,915)
(34,535)
 
Income (loss) before income and mining taxes
(110,584)
163,477 
71,544 
313,300 
 
Total Assets
5,544,051 
 
5,544,051 
 
5,500,351 
Canada
 
 
 
 
 
Segment reporting Information
 
 
 
 
 
Revenues from Mining Operations
352,514 
303,463 
928,228 
751,646 
 
Production Costs
169,243 
144,084 
456,634 
355,672 
 
Amortization
50,133 
36,731 
143,104 
90,180 
 
Foreign currency translation loss (gain)
(12,581)
12,186 
(893)
8,509 
 
Segment Income Gain (Loss)
(152,464)
110,462 
31,200 
297,285 
 
Goldex write-off
298,183 
 
298,183 
 
 
Total Assets
3,837,263 
 
3,837,263 
 
4,172,997 
Europe
 
 
 
 
 
Segment reporting Information
 
 
 
 
 
Revenues from Mining Operations
62,165 
51,225 
163,391 
120,438 
 
Production Costs
27,648 
24,155 
82,340 
65,110 
 
Amortization
6,939 
6,241 
19,716 
19,531 
 
Foreign currency translation loss (gain)
(2,355)
4,793 
1,432 
106 
 
Segment Income Gain (Loss)
29,933 
16,036 
59,903 
35,691 
 
Total Assets
741,293 
 
741,293 
 
679,258 
Latin America
 
 
 
 
 
Segment reporting Information
 
 
 
 
 
Revenues from Mining Operations
105,858 
43,790 
274,677 
111,433 
 
Production Costs
40,299 
28,435 
109,537 
60,692 
 
Amortization
10,032 
5,173 
25,448 
12,940 
 
Foreign currency translation loss (gain)
(5,770)
706 
(5,101)
544 
 
Segment Income Gain (Loss)
61,297 
9,476 
144,793 
37,257 
 
Mexico
 
 
 
 
 
Segment reporting Information
 
 
 
 
 
Total Assets
671,677 
 
671,677 
 
619,263 
Exploration
 
 
 
 
 
Segment reporting Information
 
 
 
 
 
Exploration and Corporate Development
9,610 
19,491 
43,877 
39,950 
 
Foreign currency translation loss (gain)
(714)
 
(80)
 
 
Segment Income Gain (Loss)
(8,896)
(19,491)
(43,797)
(39,950)
 
Total Assets
293,818 
 
293,818 
 
28,833 
Corporate and Other Income (Loss)
 
 
 
 
 
Segment reporting Information
 
 
 
 
 
Interest and sundry income (loss)
(46)
1,784 
(22)
3,943 
 
Gain on sale of available-for-sale securities
(3,402)
7,839 
1,412 
8,185 
 
Gain (Loss) on derivative financial instruments
(1,678)
(1,330)
654 
3,826 
 
Net gain on acquisition of assets
 
57,526 
 
57,526 
 
Gain on sale of mining property
 
8,888 
 
8,888 
 
General and administrative expenses
(20,410)
(19,925)
(79,684)
(71,595)
 
Provincial capital tax
 
6,934 
 
6,779 
 
Interest expense
(14,918)
(14,722)
(42,915)
(34,535)
 
Income (loss) before income and mining taxes
(110,584)
163,477 
71,544 
313,300 
 
Meliadine Mine Project
 
 
 
 
 
Segment reporting Information
 
 
 
 
 
Goodwill
$ 200,100 
 
$ 200,100 
 
$ 200,100 
GENERAL AND ADMINISTRATIVE (Details) (Meadowbank Mine Fire, USD $)
In Millions
3 Months Ended
Sep. 30, 2011
3 Months Ended
Mar. 31, 2011
Meadowbank Mine Fire
 
 
GENERAL AND ADMINISTRATIVE
 
 
Loss on disposal due to kitchen fire at Meadowbank Mine
 
$ 6.9 
Costs related to disposal of property
 
5.3 
Insurance receivable
 
9.1 
Loss due to fire recognized in the General and Administrative
 
3.1 
Maximum exposure to insurance losses
 
3.1 
Insurance proceeds received
$ 2.0 
 
LOSS ON GOLDEX MINE (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Sep. 30, 2011
9 Months Ended
Sep. 30, 2011
Loss on suspended operations
 
 
Loss on Goldex Mine (before income and mining taxes)
$ 298,183 
$ 298,183 
Goldex Mine
 
 
Loss on suspended operations
 
 
Proven and probable gold reserves
 
1.6 
Loss on Goldex Mine property, plant, and mine development
237,142 
237,142 
Loss on underground ore stockpile
16,641 
16,641 
Increase in asset retirement obligation
44,400 
44,400 
Loss on Goldex Mine (before income and mining taxes)
298,183 
 
Income and mining taxes
(104,370)
 
Loss on Goldex Mine (after income and mining taxes)
$ 193,813 
 
SUBSEQUENT EVENTS (Details) (Grayd Resource Corporation, CAD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended
Oct. 31, 2011
Oct. 13, 2011
Numerator
Denominator
Subsequent event disclosures
 
 
Consideration per common share (in dollars per share)
 
$ 2.8 
Take-over bid, approximate transaction value
 
$ 275 
Share issuable ratio
 
0.04039 
Cash consideration per common share with Agnico-Eagle share (in dollars per share)
 
$ 0.05 
Fraction of total cash consideration payable by Agnico-Eagle, numerator
 
Fraction of total cash consideration payable by Agnico-Eagle, denominator
 
Maximum cash payable to total consideration
 
183 
Maximum number of shares issuable under the offer
2,700,000 
 
Subsequent event disclosures
 
 
Consideration per common share (in dollars per share)
 
$ 2.8 
Take-over bid, approximate transaction value
 
275 
Share issuable ratio
 
0.04039 
Cash consideration per common share with Agnico-Eagle share (in dollars per share)
 
$ 0.05 
Fraction of total cash consideration payable by Agnico-Eagle, numerator
 
Fraction of total cash consideration payable by Agnico-Eagle, denominator
 
Maximum cash payable to total consideration
 
$ 183 
Maximum number of shares issuable under the offer
2,700,000 
 
Document and Entity Information
9 Months Ended
Sep. 30, 2011
Document and Entity Information
 
Entity Registrant Name
AGNICO EAGLE MINES LTD 
Entity Central Index Key
0000002809 
Document Type
6-K 
Document Period End Date
Sep. 30, 2011 
Amendment Flag
FALSE 
Current Fiscal Year End Date
--12-31 
Entity Current Reporting Status
Yes 
Entity Filer Category
Large Accelerated Filer 
Document Fiscal Year Focus
2011 
Document Fiscal Period Focus
Q3