AGNICO EAGLE MINES LTD, 6-K filed on 8/11/2014
Report of Foreign Issuer
Document and Entity Information
6 Months Ended
Jun. 30, 2014
Document and Entity Information
 
Entity Registrant Name
AGNICO EAGLE MINES LTD 
Entity Central Index Key
0000002809 
Document Type
6-K 
Document Period End Date
Jun. 30, 2014 
Amendment Flag
false 
Current Fiscal Year End Date
--12-31 
Entity Current Reporting Status
Yes 
Document Fiscal Year Focus
2014 
Document Fiscal Period Focus
Q2 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Current
 
 
Cash and cash equivalents
$ 240,773 
$ 139,101 
Short-term investments
4,221 
2,217 
Restricted cash
30,154 
28,723 
Trade receivables (note 4)
57,800 
67,300 
Inventories:
 
 
Ore in stockpiles and on leach pads
73,163 
51,826 
Concentrates and dore bars
67,739 
46,658 
Supplies
221,843 
253,160 
Income taxes recoverable
 
18,682 
Available-for-sale securities (notes 4 and 8)
71,538 
74,581 
Fair value of derivative financial instruments (notes 4 and 10)
14,710 
5,590 
Other current assets
122,224 
116,993 
Total current assets
904,165 
804,831 
Other assets
59,416 
66,394 
Goodwill (note 14)
39,017 
39,017 
Equity investment (note 14)
1,638,784 
 
Property, plant and mine development (note 5)
4,067,096 
4,049,117 
TOTAL ASSETS
6,708,478 
4,959,359 
Current
 
 
Accounts payable and accrued liabilities
235,662 
173,374 
Reclamation provision (note 13)
1,934 
3,452 
Interest payable (note 9)
13,869 
13,803 
Income taxes payable
22,409 
7,523 
Capital lease obligations
9,714 
12,035 
Fair value of derivative financial instruments (notes 4 and 10)
34,718 
467 
Total current liabilities
318,306 
210,654 
Long-term debt (note 9)
1,320,000 
1,000,000 
Reclamation provision and other liabilities
176,897 
178,236 
Deferred income and mining tax liabilities
603,164 
593,320 
SHAREHOLDERS' EQUITY
 
 
Common shares (note 6): Outstanding - 209,689,597 common shares issued, less 1,165,231 shares held in trust
4,451,910 
3,294,007 
Stock options (notes 6 and 7)
185,922 
174,470 
Contributed surplus
37,254 
37,254 
Deficit
(394,821)
(513,441)
Accumulated other comprehensive income (loss) (note 6)
9,846 
(15,141)
Total shareholders' equity
4,290,111 
2,977,149 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 6,708,478 
$ 4,959,359 
CONSOLIDATED BALANCE SHEETS (Parenthetical)
Jun. 30, 2014
CONSOLIDATED BALANCE SHEETS
 
Common shares, issued
209,689,597 
Number of shares of common stock held in trust
1,165,231 
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
REVENUES
 
 
 
 
Revenues from mining operations
$ 437,794 
$ 336,424 
$ 929,561 
$ 756,846 
COSTS, EXPENSES AND OTHER INCOME
 
 
 
 
Production
239,006 1
225,951 1
463,097 1
456,004 1
Exploration and corporate development
11,552 
11,326 
20,970 
19,897 
Amortization of property, plant and mine development (note 5)
77,570 
70,128 
151,107 
140,199 
General and administrative (note 15)
24,791 
28,385 
52,030 
65,705 
Impairment loss on available-for-sale securities (note 8)
2,419 
17,313 
2,419 
28,308 
Provincial capital tax
 
(1,504)
 
(1,504)
Interest expense (note 9)
15,731 
13,735 
31,666 
27,651 
Interest and sundry expense
3,370 
3,734 
2,953 
3,946 
Loss (gain) on derivative financial instruments (note 10)
1,344 
1,936 
(1,984)
(1,046)
Gain on sale of available-for-sale securities (note 8)
(5,016)
 
(5,289)
 
Foreign currency translation loss (gain)
8,666 
(11,120)
326 
(7,462)
Income (loss) before income and mining taxes and other items
58,361 
(23,460)
212,266 
25,148 
Income and mining taxes expense
18,360 
920 
63,413 
25,669 
Loss on equity investment (note 14)
2,325 
 
2,325 
 
Net income (loss) for the period
37,676 
(24,380)
146,528 
(521)
Net income (loss) per share - basic (note 6)
$ 0.20 
$ (0.14)
$ 0.81 
$ 0.00 
Net income (loss) per share - diluted (note 6)
$ 0.20 
$ (0.14)
$ 0.81 
$ 0.00 
Cash dividends declared per common share
$ 0.08 
$ 0.22 
$ 0.16 
$ 0.22 
COMPREHENSIVE INCOME
 
 
 
 
Net income (loss) for the period
37,676 
(24,380)
146,528 
(521)
Available-for-sale securities and other investments:
 
 
 
 
Unrealized gain (loss)
5,264 
(20,802)
26,282 
(20,975)
Reclassification to impairment loss on available-for-sale securities (note 8)
2,419 
17,313 
2,419 
28,308 
Reclassification to realized gain on sale of available-for-sale securities (note 8)
(5,016)
 
(5,289)
 
Derivative financial instruments:
 
 
 
 
Unrealized gain (loss)
1,920 
(1,932)
1,334 
(1,851)
Reclassification to production costs
(70)
10 
475 
20 
Pension benefits:
 
 
 
 
Reclassification to general and administrative expense
165 
131 
330 
262 
Income tax recovery impact of reclassification items
(25)
(37)
(212)
(74)
Income tax (recovery) expense impact of other comprehensive income (loss) items
(506)
508 
(352)
489 
Other comprehensive income (loss) for the period
4,151 
(4,809)
24,987 
6,179 
Comprehensive income (loss) for the period
$ 41,827 
$ (29,189)
$ 171,515 
$ 5,658 
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)
Balance at Dec. 31, 2012
 
$ 3,241,922 
$ 148,032 
$ 24,858 
$ 15,665 
$ 7,046 
$ (27,311)
Balance (in shares) at Dec. 31, 2012
 
172,102,870 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
Shares issued under employee stock option plan (notes 6 and 7)
 
9,765 
(3,292)
 
 
 
 
Shares issued under employee stock option plan (notes 6 and 7) (in shares)
 
213,500 
 
 
 
 
 
Stock options (notes 6 and 7)
 
 
19,095 
 
 
 
 
Shares issued under incentive share purchase plan
 
11,742 
 
 
 
 
 
Shares issued under incentive share purchase plan (in shares)
 
370,536 
 
 
 
 
 
Shares issued under dividend reinvestment plan
 
14,456 
 
 
 
 
 
Shares issued under dividend reinvestment plan (in shares)
 
430,733 
 
 
 
 
 
Net income (loss) for the period
(521)
 
 
 
 
(521)
 
Dividends declared ($0.22 and $ 0.16 per share for the six months ended June 30, 2013, and 2014, respectively)
 
 
 
 
 
(38,150)
 
Other comprehensive income for the period
6,179 
 
 
 
 
 
6,179 
Restricted share unit plan (note 6)
 
(12,817)
 
 
 
157 
 
Restricted share unit plan (note 6) (in shares)
 
(202,945)
 
 
 
 
 
Balance at Jun. 30, 2013
 
3,265,068 
163,835 
24,858 
15,665 
(31,468)
(21,132)
Balance (in shares) at Jun. 30, 2013
 
172,914,694 
 
 
 
 
 
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 
 
 
 
 
 
Increase (Decrease) in Shareholders' Equity
 
 
 
 
 
 
 
Shares issued under employee stock option plan (notes 6 and 7)
 
12,976 
(2,693)
 
 
 
 
Shares issued under employee stock option plan (notes 6 and 7) (in shares)
 
377,425 
 
 
 
 
 
Stock options (notes 6 and 7)
 
 
14,145 
 
 
 
 
Shares issued under incentive share purchase plan
 
8,088 
 
 
 
 
 
Shares issued under incentive share purchase plan (in shares)
 
238,042 
 
 
 
 
 
Shares issued under dividend reinvestment plan
 
3,042 
 
 
 
 
 
Shares issued under dividend reinvestment plan (in shares)
 
98,075 
 
 
 
 
 
Shares issued for equity investment (note 14)
 
1,164,237 
 
 
 
 
 
Shares issued for equity investment (note 14) (in shares)
 
34,794,892 
 
 
 
 
 
Common shares held in depositary relating to convertible debentures acquired from Osisko
 
(29,166)
 
 
 
 
 
Common shares held in depositary relating to convertible debentures acquired from Osisko (in shares)
(871,680)
(871,680)
 
 
 
 
 
Net income (loss) for the period
146,528 
 
 
 
 
146,528 
 
Dividends declared ($0.22 and $ 0.16 per share for the six months ended June 30, 2013, and 2014, respectively)
 
 
 
 
 
(27,908)
 
Other comprehensive income for the period
24,987 
 
 
 
 
 
24,987 
Restricted share unit plan (note 6)
 
(1,274)
 
 
 
 
 
Restricted share unit plan (note 6) (in shares)
 
(66,363)
 
 
 
 
 
Balance at Jun. 30, 2014
$ 4,290,111 
$ 4,451,910 
$ 185,922 
 
$ 37,254 
$ (394,821)
$ 9,846 
Balance (in shares) at Jun. 30, 2014
 
208,524,366 
 
 
 
 
 
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical)
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
 
 
 
 
Dividends declared (in dollars per share)
$ 0.08 
$ 0.22 
$ 0.16 
$ 0.22 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
OPERATING ACTIVITIES
 
 
 
 
Net income (loss) for the period
$ 37,676 
$ (24,380)
$ 146,528 
$ (521)
Add (deduct) items not affecting cash:
 
 
 
 
Amortization of property, plant and mine development (note 5)
77,570 
70,128 
151,107 
140,199 
Deferred income and mining taxes
1,607 
(562)
8,339 
6,464 
Gain on sale of available-for-sale securities (note 8)
(5,016)
 
(5,289)
 
Stock-based compensation (note 7)
9,587 
9,332 
23,490 
25,609 
Impairment loss on available-for-sale securities (note 8)
2,419 
17,313 
2,419 
28,308 
Foreign currency translation loss (gain)
8,666 
(11,120)
326 
(7,462)
Loss on equity investment (note 14)
2,325 
 
2,325 
 
Other
4,769 
5,877 
5,029 
11,008 
Adjustment for settlement of environmental remediation
(81)
(2,990)
(1,015)
(5,542)
Changes in non-cash working capital balances:
 
 
 
 
Trade receivables
16,611 
10,525 
9,500 
7,749 
Income taxes
3,109 
(4,199)
33,568 
(8,107)
Inventories
(9,670)
3,789 
15,842 
31,781 
Other current assets
(18,431)
(15,091)
(2,911)
(20,856)
Accounts payable and accrued liabilities
73,725 
24,283 
56,320 
14,181 
Interest payable
(7,157)
(7,607)
(140)
(1,441)
Cash provided by operating activities
197,709 
75,298 
445,438 
221,370 
INVESTING ACTIVITIES
 
 
 
 
Additions to property, plant and mine development (note 5)
(101,512)
(171,773)
(200,305)
(302,407)
Equity investment (note 14)
(464,902)
 
(464,902)
 
Acquisition of Urastar Gold Corporation, net (note 14)
 
(10,051)1
 
(10,051)1
(Increase) decrease in short-term investments
(2,004)
2,308 
(2,004)
3,612 
Net proceeds from sale of available-for-sale securities (note 8)
39,529 
 
40,142 
 
Purchase of available-for-sale securities and warrants (note 8)
 
(39,584)
(13,385)
(52,259)
(Increase) decrease in restricted cash
(7,375)
818 
(1,431)
1,344 
Cash used in investing activities
(536,264)
(218,282)
(641,885)
(359,761)
FINANCING ACTIVITIES
 
 
 
 
Dividends paid
(12,940)
(31,759)
(24,913)
(61,649)
Repayment of capital lease obligations
(2,431)
(3,509)
(6,683)
(6,062)
Sale-leaseback financing
 
 
1,027 
 
Proceeds from long-term debt (note 9)
730,000 
50,000 
730,000 
90,000 
Repayment of long-term debt (note 9)
(330,000)
 
(410,000)
(70,000)
Repurchase of common shares for restricted share unit plan (note 6)
 
 
(7,518)
(19,000)
Common shares issued (note 6)
11,266 
3,945 
15,895 
15,884 
Cash provided by (used in) financing activities
395,895 
18,677 
297,808 
(50,827)
Effect of exchange rate changes on cash and cash equivalents
1,658 
(599)
311 
(1,471)
Net increase (decrease) in cash and cash equivalents during the period
58,998 
(124,906)
101,672 
(190,689)
Cash and cash equivalents, beginning of period
181,775 
232,285 
139,101 
298,068 
Cash and cash equivalents, end of period
240,773 
107,379 
240,773 
107,379 
SUPPLEMENTAL CASH FLOW INFORMATION
 
 
 
 
Interest paid (note 9)
22,305 
21,715 
30,456 
28,547 
Income and mining taxes paid
$ 13,172 
$ 9,367 
$ 21,321 
$ 31,000 
BASIS OF PRESENTATION
BASIS OF PRESENTATION

1.     BASIS OF PRESENTATION

  • The accompanying interim unaudited consolidated financial statements of Agnico Eagle Mines Limited ("Agnico Eagle" or the "Company") have been prepared in accordance with United States generally accepted accounting principles ("US GAAP") in US dollars. They do not include all of the disclosures required by US GAAP for annual financial statements. Accordingly, these interim unaudited consolidated financial statements should be read in conjunction with the fiscal 2013 audited annual consolidated financial statements, including the accounting policies and notes thereto, included in the Annual Report and Annual Information Form/Form 40-F for the year ended December 31, 2013. In the opinion of management, the interim unaudited consolidated financial statements reflect all adjustments, which consist only of normal and recurring adjustments necessary to present fairly the financial position as at June 30, 2014 and the results of operations and cash flows for the three and six months ended June 30, 2014 and June 30, 2013.

    Operating results for the three and six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2014.

USE OF ESTIMATES
USE OF ESTIMATES

2.     USE OF ESTIMATES

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

ACCOUNTING POLICIES
ACCOUNTING POLICIES

3.     ACCOUNTING POLICIES

  • These interim unaudited consolidated financial statements follow the same accounting policies and methods of their application as the December 31, 2013 audited annual consolidated financial statements.

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 June 30, 2014 using the fair value hierarchy:

   
  Level 1   Level 2   Level 3   Total  
 

Financial assets:

                         
 

Trade receivables(i)

  $   $ 57,800   $   $ 57,800  
 

Available-for-sale securities(ii)

    66,211     5,327         71,538  
 

Fair value of derivative financial instruments(iii)

        14,710         14,710  
                     
 

 

  $ 66,211   $ 77,837   $   $ 144,048  
                     
 

Financial liabilities:

                         
 

Fair value of derivative financial instruments(iii)

  $ 33,385   $ 1,333   $   $ 34,718  
                     
  • 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  
                     

  • 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 representing shares of publicly traded entities are recorded at fair value using quoted market prices (classified within Level 1 of the fair value hierarchy). Available-for-sale securities representing shares of non-publicly traded entities are recorded at fair value using external broker-dealer quotations (classified within Level 2 of the fair value hierarchy).


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

    Derivative financial instruments classified within Level 1 of the fair value hierarchy relate to common shares held in depositary relating to convertible debentures acquired from Osisko (see note 10 for details). These financial liabilities constitute contracts to issue publicly-traded shares for which quoted market prices approximate the fair value of the derivative financial instruments.

  • In the event that a decline in the fair value of an investment in available-for-sale securities occurs and the decline in value is considered to be other-than-temporary, an impairment charge is recorded in the interim unaudited consolidated statements of income (loss) and comprehensive income (loss) and a new cost basis for the investment is established. The Company assesses whether a decline in value is considered to be other-than-temporary by considering available evidence, including changes in general market conditions, specific industry and 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 could become available in future periods which would affect this assessment and thus could result in material impairment charges with respect to those investments in available-for-sale securities for which the cost basis exceeds its fair value.

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

5.     PROPERTY, PLANT AND MINE DEVELOPMENT

   
  As at June 30, 2014   As at December 31, 2013  
   
  Cost   Accumulated
Amortization
  Net Book
Value
  Cost   Accumulated
Amortization
  Net Book
Value
 
 

Mining properties

  $ 1,375,973   $ 121,256   $ 1,254,717   $ 1,361,867   $ 89,700   $ 1,272,167  
 

Plant and equipment

    2,557,739     780,592     1,777,147     2,286,887     662,394     1,624,493  
 

Mine development costs

    1,082,728     261,699     821,029     1,038,564     239,898     798,666  
 

Construction in Progress:

                                     
 

Meliadine project

    214,203         214,203     192,413         192,413  
 

La India mine(i)

                161,378         161,378  
                             
 

 

  $ 5,230,643   $ 1,163,547   $ 4,067,096   $ 5,041,109   $ 991,992   $ 4,049,117  
                             

  • Note:

    (i)
    Upon achieving commercial production at the La India mine in February 2014, related costs accumulated in construction in progress were reclassified to mine development costs within property, plant and mine development.
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY

6.     SHAREHOLDERS' EQUITY

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

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

    During the first quarter of 2014, the Company funded the RSU plan by transferring $7.5 million (first quarter of 2013 — $19.0 million) to an employee benefit trust (the "Trust") that then purchased common shares of the Company in the open market. For accounting purposes, the Trust is treated as a variable interest entity and consolidated in the accounts of the Company. The common shares purchased and held by the Trust are excluded from the basic net income (loss) per share calculations but are included in the basic net income (loss) per share calculations once they have vested. All of the non-vested common shares held by the Trust are included in the diluted net income (loss) per share calculations, unless the impact is anti-dilutive.

    The following table sets out the maximum number of common shares that would be outstanding if all instruments outstanding at June 30, 2014 were exercised:

 

Common shares outstanding at June 30, 2014

    208,524,366  
 

Employee stock options

    12,150,710  
 

RSU plan

    293,551  
 

Common shares held in depositary relating to convertible debentures acquired from Osisko (note 10)

    871,680  
         
 

 

    221,840,307  
         
  • 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:

   
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
   
  2014   2013   2014   2013  
 

Net income (loss) for the period

  $ 37,676   $ (24,380 ) $ 146,528   $ (521 )
                     
 

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

    185,718     172,572     179,845     172,426  
 

Add: Dilutive impact of shares related to RSU plan

    346         329      
 

Add: Dilutive impact of common shares held in depositary relating to convertible debentures acquired from Osisko (note 10)

    143         72      
                     
 

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

    186,207     172,572     180,246     172,426  
                     
 

Net income (loss) per share — basic

  $ 0.20   $ (0.14 ) $ 0.81   $ (0.00 )
                     
 

Net income (loss) per share — diluted

  $ 0.20   $ (0.14 ) $ 0.81   $ (0.00 )
                     
  • Diluted net income per share has been calculated using the treasury stock method. In applying the treasury stock method, outstanding employee stock options and warrants with an exercise price greater than the average quoted market price of the common shares for the period outstanding are not included in the calculation of diluted net income per share as the impact would be anti-dilutive.

    For the three and six months ended June 30, 2014, all employee stock options were excluded from the calculation of diluted net income per share as their effect would have been anti-dilutive.

    For the three and six months ended June 30, 2013, the impact of any additional shares issued under the employee stock option plan, as a result of the conversion of warrants, or related to the RSU Plan would be anti-dilutive as a result of the net loss positions. Consequently, diluted net loss per share was calculated in the same manner as basic net loss per share. The warrants expired unexercised on December 3, 2013.

    Accumulated other comprehensive income (loss)

    The following table sets out the changes in accumulated other comprehensive income (loss) by component for the six months ended June 30, 2014:

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

Accumulated other comprehensive (loss) income, December 31, 2013

  $ (16,206 ) $ 3,965   $ (148 ) $ (2,752 ) $ (15,141 )
                         
 

Unrealized other comprehensive gain

        26,282     1,334         27,616  
 

Income tax recovery impact

            (352 )       (352 )
 

Reclassifications from accumulated other comprehensive (loss) income to the interim unaudited consolidated statements of income (loss) and comprehensive income (loss)

        (2,870 )   475     330     (2,065 )
 

Income tax recovery impact

            (125 )   (87 )   (212 )
                         
 

Other comprehensive income for the period

        23,412     1,332     243     24,987  
                         
 

Accumulated other comprehensive (loss) income, June 30, 2014

  $ (16,206 ) $ 27,377   $ 1,184   $ (2,509 ) $ 9,846  
                         
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION

7.     STOCK-BASED COMPENSATION

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

   
  Six Months Ended
June 30, 2014
  Six Months Ended
June 30, 2013
 
   
  Number of
Stock
Options
  Weighted
Average
Exercise Price
  Number of
Stock
Options
  Weighted
Average
Exercise Price
 
 

Outstanding, beginning of period

    11,283,535   C$ 56.02     10,587,126   C$ 56.60  
 

Granted

    3,180,000     28.04     2,803,000     52.13  
 

Exercised

    (377,425 )   29.90     (213,500 )   37.06  
 

Forfeited

    (211,250 )   52.24     (181,750 )   60.68  
 

Expired

    (1,724,150 )   62.64     (1,340,885 )   54.86  
                     
 

Outstanding, end of period

    12,150,710   C$ 48.63     11,653,991   C$ 56.02  
                     
 

Options exercisable, end of period

    7,739,210   C$ 55.42     7,469,045   C$ 59.36  
                     
  • Agnico Eagle estimated the fair value of stock options under the Black-Scholes option pricing model using the following weighted average assumptions:

   
  Six Months Ended
June 30,
 
   
  2014   2013  
 

Risk-free interest rate

    1.56%     1.51%  
 

Expected life of stock options (in years)

    2.6     2.7  
 

Expected volatility of Agnico Eagle's share price

    42.5%     35.0%  
 

Expected dividend yield

    3.83%     1.79%  
AVAILABLE-FOR-SALE SECURITIES
AVAILABLE-FOR-SALE SECURITIES

8.     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
June 30,
2014
  As at
December 31,
2013
 
 

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

             
 

Cost (net of impairments)

  $ 43,077   $ 30,583  
 

Unrealized gains in accumulated other comprehensive income (loss)

    27,786     11,530  
             
 

Estimated fair value

    70,863     42,113  
             
 

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

             
 

Cost (net of impairments)

    1,006     39,933  
 

Unrealized losses in accumulated other comprehensive income (loss)

    (331 )   (7,465 )
             
 

Estimated fair value

    675     32,468  
             
 

Total estimated fair value of available-for-sale securities

  $ 71,538   $ 74,581  
             
  • During the three months ended June 30, 2014, the Company received proceeds of $39.5 million and recognized a gain before income taxes of $5.0 million on the sale of certain available-for-sale securities. During the six months ended June 30, 2014, the Company received proceeds of $40.1 million and recognized a gain before income taxes of $5.3 million on the sale of certain available-for-sale securities. During the three and six months ended June 30, 2013, the Company did not dispose of any available-for-sale securities.

    During the three and six months ended June 30, 2014, certain available-for-sale securities fell into an unrealized loss position. In each case, the Company evaluated the near-term prospects of the issuers in relation to the severity and duration of the impairment. During the three months ended June 30, 2014, the Company recorded an impairment loss of $2.4 million (three months ended June 30, 2013 — $17.3 million) on certain available-for-sale securities that were determined to be other-than-temporarily impaired. During the six months ended June 30, 2014, the Company recorded an impairment loss of $2.4 million (six months ended June 30, 2013 — $28.3 million) on certain available-for-sale securities that were determined to be other-than-temporarily impaired.

    At June 30, 2014, the fair value of available-for-sale securities in an unrealized loss position was $0.7 million (December 31, 2013 — $32.5 million) with total unrealized losses in accumulated other comprehensive income (loss) of $0.3 million (December 31, 2013 — $7.5 million). Based on an evaluation of the severity and duration of the impairment of these available-for-sale securities (less than three months) and on the Company's intent to hold the investments for a period of time sufficient for a recovery of fair value, the Company does not consider these available-for-sale securities to be other-than-temporarily impaired as at June 30, 2014.

LONG-TERM DEBT
LONG-TERM DEBT

9.     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 $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 June 30, 2014, the Credit Facility was drawn down by $520.0 million (December 31, 2013 — $200.0 million). Amounts drawn down, together with outstanding letters of credit under the Credit Facility, resulted in Credit Facility availability of $678.9 million at June 30, 2014.

    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 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 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, 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 June 30, 2014.

    Interest on long-term debt

    Total long-term debt interest costs incurred during the three and six months ended June 30, 2014 were $13.4 million (three months ended June 30, 2013 — $12.4 million) and $26.6 million (six months ended June 30, 2013 — $24.7 million), respectively.

    Total interest costs capitalized to property, plant and mine development during the three and six months ended June 30, 2014 were $0.2 million (three months ended June 30, 2013 — $1.2 million) and $0.4 million (six months ended June 30, 2013 — $2.3 million), respectively.

    During the three months ended June 30, 2014, cash interest paid on the Credit Facility was $0.8 million (three months ended June 30, 2013 — $0.2 million), cash standby fees paid on the Credit Facility were $1.4 million (three months ended June 30, 2013 — $1.2 million) and cash interest paid on the 2010 Notes and 2012 Notes was $19.8 million (three months ended June 30, 2013 — $19.8 million).

    During the six months ended June 30, 2014, cash interest paid on the Credit Facility was $1.9 million (six months ended June 30, 2013 — $0.2 million), cash standby fees paid on the Credit Facility were $2.8 million (six months ended June 30, 2013 — $2.4 million) and cash interest paid on the 2010 Notes and 2012 Notes was $24.7 million (six months ended June 30, 2013 — $24.7 million).

FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS

10.   FINANCIAL INSTRUMENTS

  • Currency Risk Management

    The Company utilizes 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.

    As at June 30, 2014, the Company had outstanding foreign exchange zero cost collars with a cash flow hedging relationship that qualified for hedge accounting under ASC 815 — Derivatives and Hedging. The purchase of US dollar put options was financed through selling US dollar call options at a higher level such that the net premium payable to the different counterparties by the Company was nil. At June 30, 2014, the zero cost collars hedged $120.0 million of 2014 expenditures and the Company recognized mark-to-market adjustments in accumulated other comprehensive income (loss).

    Amounts deferred in accumulated other comprehensive income (loss) are reclassified to the production costs line item on the interim unaudited 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 to calculate fair value.

    The Company's other foreign currency derivative strategies in 2014 and 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 for Canadian dollars. All of these derivative transactions expired prior to period end such that no derivatives were outstanding as at June 30, 2014 or June 30, 2013. The call option premiums were recognized in the (loss) gain on derivative financial instruments line item of the interim unaudited consolidated statements of income (loss) and comprehensive income (loss).

    Commodity Price Risk Management

    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 was approximately 55.0% of the Meadowbank mine's expected 2013 diesel fuel operating costs. These contracts qualified for hedge accounting and the related market-to-market adjustments prior to settlement were recognized in accumulated other comprehensive income (loss). No heating oil derivative financial instrument contracts expired during the three or six months ended June 30, 2014.

    Amounts deferred in accumulated other comprehensive income (loss) are reclassified to the production costs line item on the interim unaudited 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 June 30, 2014 and December 31, 2013, 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 by-product metal sales.

    Common Shares Held in Depositary Relating to Convertible Debentures Acquired from Osisko

    As part of the Company's joint acquisition of Osisko on June 16, 2014 (see note 14 for details), 871,680 Agnico Eagle common shares were contributed to a depositary to satisfy the convertible debentures acquired from Osisko if converted in the future.

    These Agnico Eagle common shares are not considered outstanding as they are non-voting and as accrued dividends may revert back to the Company. These common shares are excluded from the calculation of basic net income per share and are included in the calculation of diluted net income per share (see note 6 for net income per share calculations).

    Agnico Eagle has recorded a derivative financial instrument liability relating to the potential delivery of its common shares relating to the convertible debentures acquired from Osisko on the fair value of derivative financial instruments line item of the interim unaudited consolidated balance sheets. Related fair value gains and losses are reported on the (loss) gain on derivative financial instrument line item of the interim unaudited consolidated statements of income (loss) and comprehensive income (loss).

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

   
  Three
Months Ended
June 30,
  Six
Months Ended
June 30,
 
   
  2014   2013   2014   2013  
 

Premiums realized on written foreign exchange call options

  $ 1,178   $ 789   $ 2,010   $ 1,473  
 

Mark-to-market (loss) gain on derivative equity contracts(i)

    (500 )   498     (948 )   1,331  
 

Realized loss on warrants

            (185 )    
 

Mark-to-market gain (loss) on warrants(i)

    2,197     (3,223 )   5,326     (1,758 )
 

Mark-to-market loss on common shares held in depositary relating to convertible debentures acquired from Osisko(i)

    (4,219 )       (4,219 )    
                     
 

(Loss) gain on derivative financial instruments

  $ (1,344 ) $ (1,936 ) $ 1,984   $ 1,046  
                     

  • Note:

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

11.   COMMITMENTS AND CONTINGENCIES

  • As part of its ongoing business and operations, the Company has been required to provide assurance in the form of letters of credit for environmental and site restoration costs, custom credits, government grants and other general corporate purposes. As at June 30, 2014, the total amount of these guarantees was $180.0 million.

SEGMENTED INFORMATION
SEGMENTED INFORMATION

12.   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 the three and six months ended June 30, 2013 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, Canadian Malartic mine, Meliadine project and Kittila mine
 

Southern Business:

  Pinos Altos mine, Creston Mascota deposit at Pinos Altos and La India mine
 

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 December 31, 2013 audited annual consolidated financial statements. Excluding the related party transactions described in note 16, 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 the Urastar property) assets and specific income and expense items are set out separately below.

    The Goldex mine's M and E Zones achieved commercial production on October 1, 2013. The La India mine achieved commercial production on February 1, 2014. The Company's 50.0% interest in the Canadian Malartic mine is accounted for as an equity method investment and was jointly acquired on June 16, 2014.

 
Three Months Ended
June 30, 2014
  Revenues from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Segment
Income
(Loss)
 
 

Northern Business:

                         
 

LaRonde mine

  $ 73,160   $ (45,340 ) $   $ 27,820  
 

Lapa mine

    23,406     (14,643 )       8,763  
 

Goldex mine

    28,702     (15,028 )       13,674  
 

Meadowbank mine

    152,536     (71,892 )       80,644  
 

Canadian Malartic mine (note 16)

    21,274     (20,727 )       547  
 

Kittila mine

    41,109     (27,107 )       14,002  
                     
 

Total Northern Business

  $ 340,187   $ (194,737 ) $   $ 145,450  
                     
 

Southern Business:

                         
 

Pinos Altos mine

  $ 63,357   $ (30,033 ) $   $ 33,324  
 

Creston Mascota deposit at Pinos Altos

    14,237     (6,901 )       7,336  
 

La India mine

    20,013     (7,335 )       12,678  
                     
 

Total Southern Business

  $ 97,607   $ (44,269 ) $   $ 53,338  
                     
 

Exploration

  $   $   $ (11,552 ) $ (11,552 )
                     
 

Segments totals

  $ 437,794   $ (239,006 ) $ (11,552 ) $ 187,236  
                     
 

Total segments income

  $ 187,236  
 

Corporate and other:

                         
 

Amortization of property, plant and mine development

    (77,570 )
 

General and administrative

    (24,791 )
 

Impairment loss on available-for-sale securities

    (2,419 )
 

Interest expense

    (15,731 )
 

Interest and sundry expense

    (3,370 )
 

Loss on derivative financial instruments

    (1,344 )
 

Gain on sale of available-for-sale securities

    5,016  
 

Foreign currency translation loss

    (8,666 )
                           
 

Income before income and mining taxes and other items

    58,361  
 

Income and mining taxes expense

    (18,360 )
 

Loss on equity investment

    (2,325 )
                           
 

Net income for the period

  $ (37,676 )
                           


 

 
Three Months Ended
June 30, 2013
  Revenues from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Segment
Income
(Loss)
 
 

Northern Business:

                         
 

LaRonde mine

  $ 74,996   $ (60,624 ) $   $ 14,372  
 

Lapa mine

    34,737     (18,094 )       16,643  
 

Meadowbank mine

    122,518     (90,136 )       32,382  
 

Kittila mine

    18,047     (18,159 )       (112 )
                     
 

Total Northern Business

  $ 250,298   $ (187,013 ) $   $ 63,285  
                     
 

Southern Business:

                         
 

Pinos Altos mine

  $ 76,219   $ (34,511 ) $   $ 41,708  
 

Creston Mascota deposit at Pinos Altos

    9,907     (4,427 )       5,480  
                     
 

Total Southern Business

  $ 86,126   $ (38,938 ) $   $ 47,188  
                     
 

Exploration

  $   $   $ (11,326 ) $ (11,326 )
                     
 

Segments totals

  $ 336,424   $ (225,951 ) $ (11,326 ) $ 99,147  
                     
 

Total segments income

  $ 99,147  
 

Corporate and other:

       
 

Amortization of property, plant and mine development

    (70,128 )
 

General and administrative

    (28,385 )
 

Impairment loss on available-for-sale securities

    (17,313 )
 

Provincial capital tax

    1,504  
 

Interest expense

    (13,735 )
 

Interest and sundry expense

    (3,734 )
 

Loss on derivative financial instruments

    (1,936 )
 

Foreign currency translation gain

    11,120  
                           
 

Loss before income and mining taxes

    (23,460 )
 

Income and mining taxes expense

    (920 )
                           
 

Net loss for the period

  $ (24,380 )
                           


 

 
Six Months Ended
June 30, 2014
  Revenues from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Segment
Income
(Loss)
 
 

Northern Business:

                         
 

LaRonde mine

  $ 165,864   $ (94,927 ) $   $ 70,937  
 

Lapa mine

    54,096     (30,096 )       24,000  
 

Goldex mine

    54,072     (29,819 )       24,253  
 

Meadowbank mine

    343,576     (142,961 )       200,615  
 

Canadian Malartic mine (note 16)

    21,274     (20,727 )       547  
 

Kittila mine

    89,571     (56,532 )       33,039  
                     
 

Total Northern Business

  $ 728,453   $ (375,062 ) $   $ 353,391  
                     
 

Southern Business:

                         
 

Pinos Altos mine

  $ 133,840   $ (61,919 ) $   $ 71,921  
 

Creston Mascota deposit at Pinos Altos

    27,776     (12,929 )       14,847  
 

La India mine

    39,492     (13,187 )       26,305  
                     
 

Total Southern Business

  $ 201,108   $ (88,035 )     $ 113,073  
                     
 

Exploration

  $   $   $ (20,970 ) $ (20,970 )
                     
 

Segments totals

  $ 929,561   $ (463,097 ) $ (20,970 ) $ 445,494  
                     
 

Total segments income

  $ 445,494  
 

Corporate and other:

       
 

Amortization of property, plant and mine development

    (151,107 )
 

General and administrative

    (52,030 )
 

Impairment loss on available-for-sale securities

    (2,419 )
 

Interest expense

    (31,666 )
 

Interest and sundry expense

    (2,953 )
 

Gain on derivative financial instruments

    1,984  
 

Gain on sale of available-for-sale securities

    5,289  
 

Foreign currency translation loss

    (326 )
                           
 

Income before income and mining taxes and other items

    212,266  
 

Income and mining taxes expense

    (63,413 )
 

Loss on equity investment

    (2,325 )
                           
 

Net income for the period

  $ 146,528  
                           


 

 
Six Months Ended
June 30, 2013
  Revenues from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Segment
Income
(Loss)
 
 

Northern Business:

                         
 

LaRonde mine

  $ 166,194   $ (118,527 ) $   $ 47,667  
 

Lapa mine

    73,135     (34,704 )       38,431  
 

Meadowbank mine

    252,610     (183,725 )       68,885  
 

Kittila mine

    90,185     (45,341 )       44,844  
                     
 

Total Northern Business

  $ 582,124   $ (382,297 ) $   $ 199,827  
                     
 

Southern Business:

                         
 

Pinos Altos mine

  $ 163,909   $ (66,163 ) $   $ 97,746  
 

Creston Mascota deposit at Pinos Altos

    10,813     (7,544 )       3,269  
                     
 

Total Southern Business

  $ 174,722   $ (73,707 ) $   $ 101,015  
                     
 

Exploration

  $   $   $ (19,897 ) $ (19,897 )
                     
 

Segments totals

  $ 756,846   $ (456,004 ) $ (19,897 ) $ 280,945  
                     
 

Total segments income

  $ 280,945  
 

Corporate and other:

       
 

Amortization of property, plant and mine development

    (140,199 )
 

General and administrative

    (65,705 )
 

Impairment loss on available-for-sale securities

    (28,308 )
 

Provincial capital tax

    1,504  
 

Interest expense

    (27,651 )
 

Interest and sundry expense

    (3,946 )
 

Gain on derivative financial instruments

    1,046  
 

Foreign currency translation gain

    7,462  
                           
 

Income before income and mining taxes

    25,148  
 

Income and mining taxes expense

    (25,669 )
                           
 

Net loss for the period

  $ (521 )
                           


 

   
  Total Assets as at  
   
  June 30,
2014
  December 31,
2013
 
 

Northern Business:

             
 

LaRonde mine

  $ 873,458   $ 878,719  
 

Lapa mine

    77,778     78,293  
 

Goldex mine

    130,399     120,601  
 

Meadowbank mine

    640,662     711,387  
 

Meliadine project

    899,431     877,923  
 

Kittila mine

    908,394     870,332  
             
 

Total Northern Business

  $ 3,530,122   $ 3,537,255  
             
 

Southern Business:

             
 

Pinos Altos mine

  $ 579,023   $ 537,560  
 

Creston Mascota deposit at Pinos Altos

    86,790     86,185  
 

La India mine

    539,216     512,450  
             
 

Total Southern Business

  $ 1,205,029   $ 1,136,195  
             
 

Exploration

  $ 24,335   $ 19,838  
             
 

Corporate and other

  $ 310,208   $ 266,071  
             
 

Equity investment

  $ 1,638,784   $  
             
 

Total

  $ 6,708,478   $ 4,959,359  
             
RECLAMATION PROVISION
RECLAMATION PROVISION

13.   RECLAMATION PROVISION

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

    Due to the suspension of mining operations at the Goldex mine's GEZ on October 19, 2011, Agnico Eagle recognized an environmental remediation liability. During the six months ended June 30, 2014, the Company incurred $2.0 million in remediation costs that were applied against the environmental remediation liability recognized in 2011. As at June 30, 2014, the remaining Goldex mine environmental remediation liability was $12.6 million, $0.9 million of which was classified as a current liability.

ACQUISITIONS
ACQUISITIONS

14.   ACQUISITIONS

  • Osisko Mining Corporation

    On June 16, 2014, Agnico Eagle and Yamana Gold Inc. ("Yamana") completed the joint acquisition of 100.0% of the issued and outstanding common shares of Osisko Mining Corporation ("Osisko") by way of their previously announced court-approved plan of arrangement ("the Arrangement").

    Under the Arrangement, Agnico Eagle and Yamana each own 50.0% of Osisko and jointly operate the Canadian Malartic mine in Quebec through the newly formed Canadian Malartic General Partnership. Agnico Eagle and Yamana will also jointly explore the Kirkland Lake assets, the Hammond Reef project and the Pandora and Wood-Pandora properties.

    Each outstanding common share of Osisko was exchanged under the Arrangement for: (i) C$2.09 in cash (Agnico Eagle's 50.0% share was C$1.045); (ii) 0.07264 of an Agnico Eagle common share; (iii) 0.26471 of a Yamana common share; and (iv) 0.1 of one common share of Osisko Gold Royalties Ltd., a newly formed company that has commenced trading on the Toronto Stock Exchange.

    Pursuant to the Arrangement, the following assets of Osisko were transferred to Osisko Gold Royalties Ltd.: (i) a 5.0% net smelter royalty on the Canadian Malartic mine; (ii) C$157.0 million in cash; (iii) a 2.0% net smelter royalty on the Kirkland Lake assets, the Hammond Reef project, and certain other properties; (iv) all assets and liabilities of Osisko in its Guerrero camp; and (v) certain other investments and assets.

    Agnico Eagle has accounted for its joint acquisition of Osisko as an equity method investment. Direct transaction costs totaling $16.7 million were included in the cost of the equity investment in Osisko.

    Agnico Eagle's share of Osisko's June 16, 2014 purchase price was comprised of the following:

 

Cash paid for acquisition

  $ 462,728  
 

Agnico Eagle common shares issued for acquisition

    1,135,071  
 

Fair value of derivative financial instruments(i)

    29,166  
         
 

Total Agnico Eagle purchase price

  $ 1,626,965  
         

  • Note:

    (i)
    Represents 871,680 Agnico Eagle common shares held in depositary relating to convertible debentures acquired from Osisko.
  • A fair value approach was applied by management in developing preliminary estimates of the fair value of identifiable assets and liabilities contributed to the newly formed Osisko joint venture. Preliminary estimates of fair value represent all information available as of the acquisition date. However, estimates of fair value may be adjusted during the measurement period as new information about the facts and circumstances that existed as of the acquisition date is obtained.

    The following table sets out summarized financial information relating to Agnico Eagle's equity method investment for June 16, 2014 through June 30, 2014 based on management's preliminary estimates of fair value:

 

Current assets

  $ 153,370  
 

Non-current assets

  $ 1,939,249  
 

Current liabilities

  $ 69,243  
 

Non-current liabilities

  $ 398,736  
 

Revenues from mining operations

  $ 21,885  
 

Operating margin(i)

  $ 2,886  
 

Net loss

  $ (2,325 )

  • Note:

    (i)
    Operating margin is calculated as revenues from mining operations less production costs.
  • 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, 2013 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
 
   
  Unaudited
 
 

Pro forma net loss for the year

  $ (409,020 )
 

Pro forma net loss per share — basic

  $ (2.37 )
GENERAL AND ADMINISTRATIVE
GENERAL AND ADMINISTRATIVE

15.   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 for $11.2 million. The difference of $3.1 million was recognized in the general and administrative line item of the interim unaudited consolidated statements of income and comprehensive income in the first quarter of 2011.

    During the subsequent period ended December 31, 2013, the Company received $9.8 million of insurance proceeds and had a remaining insurance receivable of $0.7 million recorded in the other current assets line item of the consolidated balance sheets as at December 31, 2013. During the first quarter of 2014, the Company received $0.7 million of insurance proceeds and had a remaining insurance receivable of nil as at June 30, 2014.

RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS

16.   RELATED PARTY TRANSACTIONS

  • Agnico Eagle purchases 50.0% of the net metal content in the dore produced by its jointly owned equity method investee, the Canadian Malartic General Partnership, by way of a net metal content purchase agreement (the "Agreement"). Net metal content purchases under the Agreement are determined by multiplying the number of troy ounces of gold and silver purchased by the London p.m. fix rate for gold and the London fix rate for silver as quoted by the London Bullion Market Association on the date of shipment. Agnico Eagle then sells the gold and silver externally at prevailing spot market metal prices. Between June 16, 2014 and June 30, 2014, Agnico Eagle purchased $20.8 million of gold and $0.3 million of silver from the Canadian Malartic General Partnership. Gold and silver purchased by Agnico Eagle from the Canadian Malartic General Partnership is initially recorded in the concentrates and dore bars line item of the interim unaudited consolidated balance sheets and is reclassified upon external sale as an expense in the production line item of the interim unaudited consolidated statements of income (loss) and comprehensive income (loss). As at June 30, 2014, Agnico Eagle gold and silver purchases totaling $21.1 million remained payable to the Canadian Malartic General Partnership.

SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

17.   SUBSEQUENT EVENTS

  • On July 30, 2014, Agnico Eagle announced that the Board approved the payment of a quarterly cash dividend of $0.08 per common share, payable on September 16, 2014 to holders of record of the common shares of the Company on September 2, 2014.

    On July 10, 2014, Agnico Eagle announced that it had exercised 19,800,000 warrants of Pershimco Resources Inc. ("Pershimco") at an exercise price of C$0.40 per Pershimco common share for total consideration of C$7.92 million. Upon exercising the warrants that were acquired under a private placement on January 28, 2014, Agnico Eagle held 39,600,000 common shares of Pershimco.

ONGOING LITIGATION
ONGOING LITIGATION

18.   ONGOING LITIGATION

  • 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.

    Canadian Malartic Corporation Litigation

    On June 6, 2014, Clifton Star Resources Inc. ("Clifton") instituted proceedings against Canadian Malartic Corporation (formerly known as Osisko Mining Corporation or "Osisko") seeking an order that, among other things, Osisko pay Clifton C$22.5 million in damages. In the proceedings, Clifton alleges that Osisko was obliged to lend C$22.5 million (the "Loan") to Clifton on or around December 1, 2012 and that Osisko's failure to advance the Loan resulted in damages to Clifton in the same amount. In addition, Clifton claims that the agreements with Osisko entitled Clifton to repay the Loan with common shares of Clifton at a conversion rate beneficial to Clifton and has asked the court to acknowledge Clifton's right and undertaking to satisfy any obligation to repay funds that are advanced under the Loan by Osisko by issuing to Osisko 6,961,538 Clifton common shares. Clifton further alleges that the Loan was intended to be used to make payments under option agreements that entitled Clifton to purchase the shares of companies that own part of a gold project referred to as the "Duparquet Project" (the "Underlying Option Agreements"). Clifton has indicated its intention to claim an additional C$222.0 million in damages from Osisko if Clifton loses its rights under the Underlying Option Agreements. Canadian Malartic General Partnership intends to vigorously defend the action on the merits.

    On May 28, 2014, Abitibi Royalties Inc. ("Abitibi") instituted proceedings seeking a provisional, interlocutory and permanent injunction ordering Osisko not to transfer its interest in the CHL property to Canadian Malartic General Partnership. Abitibi further asserted that as a result of an internal reorganization contemplated in connection with the plan of arrangement pursuant to which Osisko was indirectly acquired by Yamana Gold Inc. and the Company, a right of first refusal had been triggered allowing it to acquire Osisko's interest in the CHL property. On May 30, 2014, the plan of arrangement was amended to clarify that Osisko's interest in the CHL property would not be transferred to Canadian Malartic General Partnership. Nevertheless, Abitibi continues to assert that its right of first refusal has been triggered, and that it is entitled to acquire Osisko's interest in the CHL property at a price to be determined by the court. On June 13, 2014, the Superior Court of Quebec dismissed Abitibi's proceedings based on an arbitration provision contained in the relevant agreement. Abitibi is appealing this judgment. Canadian Malartic Corporation intends to vigorously defend Abitibi's claim on the merits.

COMPARATIVE FIGURES
COMPARATIVE FIGURES

19.   COMPARATIVE FIGURES

  • Certain figures in the comparative interim unaudited consolidated financial statements have been reclassified from statements previously presented to conform to the presentation of the 2014 interim unaudited consolidated financial statements.

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 June 30, 2014 using the fair value hierarchy:

   
  Level 1   Level 2   Level 3   Total  
 

Financial assets:

                         
 

Trade receivables(i)

  $   $ 57,800   $   $ 57,800  
 

Available-for-sale securities(ii)

    66,211     5,327         71,538  
 

Fair value of derivative financial instruments(iii)

        14,710         14,710  
                     
 

 

  $ 66,211   $ 77,837   $   $ 144,048  
                     
 

Financial liabilities:

                         
 

Fair value of derivative financial instruments(iii)

  $ 33,385   $ 1,333   $   $ 34,718  
                     
  • 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  
                     

  • 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 representing shares of publicly traded entities are recorded at fair value using quoted market prices (classified within Level 1 of the fair value hierarchy). Available-for-sale securities representing shares of non-publicly traded entities are recorded at fair value using external broker-dealer quotations (classified within Level 2 of the fair value hierarchy).


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

    Derivative financial instruments classified within Level 1 of the fair value hierarchy relate to common shares held in depositary relating to convertible debentures acquired from Osisko (see note 10 for details). These financial liabilities constitute contracts to issue publicly-traded shares for which quoted market prices approximate the fair value of the derivative financial instruments.

PROPERTY, PLANT AND MINE DEVELOPMENT (Tables)
Schedule of property, plant and mine development

 

 

   
  As at June 30, 2014   As at December 31, 2013  
   
  Cost   Accumulated
Amortization
  Net Book
Value
  Cost   Accumulated
Amortization
  Net Book
Value
 
 

Mining properties

  $ 1,375,973   $ 121,256   $ 1,254,717   $ 1,361,867   $ 89,700   $ 1,272,167  
 

Plant and equipment

    2,557,739     780,592     1,777,147     2,286,887     662,394     1,624,493  
 

Mine development costs

    1,082,728     261,699     821,029     1,038,564     239,898     798,666  
 

Construction in Progress:

                                     
 

Meliadine project

    214,203         214,203     192,413         192,413  
 

La India mine(i)

                161,378         161,378  
                             
 

 

  $ 5,230,643   $ 1,163,547   $ 4,067,096   $ 5,041,109   $ 991,992   $ 4,049,117  
                             

  • Note:

    (i)
    Upon achieving commercial production at the La India mine in February 2014, related costs accumulated in construction in progress were reclassified to mine development costs within property, plant and mine development.
SHAREHOLDERS' EQUITY (Tables)
 

Common shares outstanding at June 30, 2014

    208,524,366  
 

Employee stock options

    12,150,710  
 

RSU plan

    293,551  
 

Common shares held in depositary relating to convertible debentures acquired from Osisko (note 10)

    871,680  
         
 

 

    221,840,307  
         
  •  

 

   
  Three Months Ended
June 30,
  Six Months Ended
June 30,
 
   
  2014   2013   2014   2013  
 

Net income (loss) for the period

  $ 37,676   $ (24,380 ) $ 146,528   $ (521 )
                     
 

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

    185,718     172,572     179,845     172,426  
 

Add: Dilutive impact of shares related to RSU plan

    346         329      
 

Add: Dilutive impact of common shares held in depositary relating to convertible debentures acquired from Osisko (note 10)

    143         72      
                     
 

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

    186,207     172,572     180,246     172,426  
                     
 

Net income (loss) per share — basic

  $ 0.20   $ (0.14 ) $ 0.81   $ (0.00 )
                     
 

Net income (loss) per share — diluted

  $ 0.20   $ (0.14 ) $ 0.81   $ (0.00 )
                     
   
  Cumulative
Translation
Adjustment
  Available-for-sale
Securities and
Other
Investments
  Derivative
Financial
Instruments
  Pension
Benefits
  Total  
 

Accumulated other comprehensive (loss) income, December 31, 2013

  $ (16,206 ) $ 3,965   $ (148 ) $ (2,752 ) $ (15,141 )
                         
 

Unrealized other comprehensive gain

        26,282     1,334         27,616  
 

Income tax recovery impact

            (352 )       (352 )
 

Reclassifications from accumulated other comprehensive (loss) income to the interim unaudited consolidated statements of income (loss) and comprehensive income (loss)

        (2,870 )   475     330     (2,065 )
 

Income tax recovery impact

            (125 )   (87 )   (212 )
                         
 

Other comprehensive income for the period

        23,412     1,332     243     24,987  
                         
 

Accumulated other comprehensive (loss) income, June 30, 2014

  $ (16,206 ) $ 27,377   $ 1,184   $ (2,509 ) $ 9,846  
                         
STOCK-BASED COMPENSATION (Tables)
   
  Six Months Ended
June 30, 2014
  Six Months Ended
June 30, 2013
 
   
  Number of
Stock
Options
  Weighted
Average
Exercise Price
  Number of
Stock
Options
  Weighted
Average
Exercise Price
 
 

Outstanding, beginning of period

    11,283,535   C$ 56.02     10,587,126   C$ 56.60  
 

Granted

    3,180,000     28.04     2,803,000     52.13  
 

Exercised

    (377,425 )   29.90     (213,500 )   37.06  
 

Forfeited

    (211,250 )   52.24     (181,750 )   60.68  
 

Expired

    (1,724,150 )   62.64     (1,340,885 )   54.86  
                     
 

Outstanding, end of period

    12,150,710   C$ 48.63     11,653,991   C$ 56.02  
                     
 

Options exercisable, end of period

    7,739,210   C$ 55.42     7,469,045   C$ 59.36  
                     
   
  Six Months Ended
June 30,
 
   
  2014   2013  
 

Risk-free interest rate

    1.56%     1.51%  
 

Expected life of stock options (in years)

    2.6     2.7  
 

Expected volatility of Agnico Eagle's share price

    42.5%     35.0%  
 

Expected dividend yield

    3.83%     1.79%  
AVAILABLE-FOR-SALE SECURITIES (Tables)
Schedule of available-for-sale securities
  •  

 

   
  As at
June 30,
2014
  As at
December 31,
2013
 
 

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

             
 

Cost (net of impairments)

  $ 43,077   $ 30,583  
 

Unrealized gains in accumulated other comprehensive income (loss)

    27,786     11,530  
             
 

Estimated fair value

    70,863     42,113  
             
 

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

             
 

Cost (net of impairments)

    1,006     39,933  
 

Unrealized losses in accumulated other comprehensive income (loss)

    (331 )   (7,465 )
             
 

Estimated fair value

    675     32,468  
             
 

Total estimated fair value of available-for-sale securities

  $ 71,538   $ 74,581  
             
LONG-TERM DEBT (Tables)
  •  

 

   
  Principal   Interest Rate   Maturity Date  
 

Series A

  $ 100,000     4.87%     7/23/2022  
 

Series B

    100,000     5.02%     7/23/2024  
                     
 

 

  $ 200,000              
                     
  •  

 

   
  Principal   Interest Rate   Maturity Date  
 

Series A

  $ 115,000     6.13%     4/7/2017  
 

Series B

    360,000     6.67%     4/7/2020  
 

Series C

    125,000     6.77%     4/7/2022  
                     
 

 

  $ 600,000              
                     
FINANCIAL INSTRUMENTS (Tables)
Summary of the amounts recognized in the (loss) gain on derivative financial instruments line item of the interim unaudited consolidated statements of income (loss) and comprehensive income (loss)
  •  

 

   
  Three
Months Ended
June 30,
  Six
Months Ended
June 30,
 
   
  2014   2013   2014   2013  
 

Premiums realized on written foreign exchange call options

  $ 1,178   $ 789   $ 2,010   $ 1,473  
 

Mark-to-market (loss) gain on derivative equity contracts(i)

    (500 )   498     (948 )   1,331  
 

Realized loss on warrants

            (185 )    
 

Mark-to-market gain (loss) on warrants(i)

    2,197     (3,223 )   5,326     (1,758 )
 

Mark-to-market loss on common shares held in depositary relating to convertible debentures acquired from Osisko(i)

    (4,219 )       (4,219 )    
                     
 

(Loss) gain on derivative financial instruments

  $ (1,344 ) $ (1,936 ) $ 1,984   $ 1,046  
                     

  • Note:

    (i)
    Mark-to-market gains and losses on financial instruments that did not qualify for hedge accounting are recognized through the (loss) gain on derivative financial instruments line item of the interim unaudited consolidated statements of income (loss) and comprehensive income (loss) and through the other line item of the interim unaudited consolidated statements of cash flows.
SEGMENTED INFORMATION (Tables)
Segment reporting information
  •  

 

 
Three Months Ended
June 30, 2014
  Revenues from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Segment
Income
(Loss)
 
 

Northern Business:

                         
 

LaRonde mine

  $ 73,160   $ (45,340 ) $   $ 27,820  
 

Lapa mine

    23,406     (14,643 )       8,763  
 

Goldex mine

    28,702     (15,028 )       13,674  
 

Meadowbank mine

    152,536     (71,892 )       80,644  
 

Canadian Malartic mine (note 16)

    21,274     (20,727 )       547  
 

Kittila mine

    41,109     (27,107 )       14,002  
                     
 

Total Northern Business

  $ 340,187   $ (194,737 ) $   $ 145,450  
                     
 

Southern Business:

                         
 

Pinos Altos mine

  $ 63,357   $ (30,033 ) $   $ 33,324  
 

Creston Mascota deposit at Pinos Altos

    14,237     (6,901 )       7,336  
 

La India mine

    20,013     (7,335 )       12,678  
                     
 

Total Southern Business

  $ 97,607   $ (44,269 ) $   $ 53,338  
                     
 

Exploration

  $   $   $ (11,552 ) $ (11,552 )
                     
 

Segments totals

  $ 437,794   $ (239,006 ) $ (11,552 ) $ 187,236  
                     
 

Total segments income

  $ 187,236  
 

Corporate and other:

                         
 

Amortization of property, plant and mine development

    (77,570 )
 

General and administrative

    (24,791 )
 

Impairment loss on available-for-sale securities

    (2,419 )
 

Interest expense

    (15,731 )
 

Interest and sundry expense

    (3,370 )
 

Loss on derivative financial instruments

    (1,344 )
 

Gain on sale of available-for-sale securities

    5,016  
 

Foreign currency translation loss

    (8,666 )
                           
 

Income before income and mining taxes and other items

    58,361  
 

Income and mining taxes expense

    (18,360 )
 

Loss on equity investment

    (2,325 )
                           
 

Net income for the period

  $ (37,676 )
                           


 

 
Three Months Ended
June 30, 2013
  Revenues from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Segment
Income
(Loss)
 
 

Northern Business:

                         
 

LaRonde mine

  $ 74,996   $ (60,624 ) $   $ 14,372  
 

Lapa mine

    34,737     (18,094 )       16,643  
 

Meadowbank mine

    122,518     (90,136 )       32,382  
 

Kittila mine

    18,047     (18,159 )       (112 )
                     
 

Total Northern Business

  $ 250,298   $ (187,013 ) $   $ 63,285  
                     
 

Southern Business:

                         
 

Pinos Altos mine

  $ 76,219   $ (34,511 ) $   $ 41,708  
 

Creston Mascota deposit at Pinos Altos

    9,907     (4,427 )       5,480  
                     
 

Total Southern Business

  $ 86,126   $ (38,938 ) $   $ 47,188  
                     
 

Exploration

  $   $   $ (11,326 ) $ (11,326 )
                     
 

Segments totals

  $ 336,424   $ (225,951 ) $ (11,326 ) $ 99,147  
                     
 

Total segments income

  $ 99,147  
 

Corporate and other:

       
 

Amortization of property, plant and mine development

    (70,128 )
 

General and administrative

    (28,385 )
 

Impairment loss on available-for-sale securities

    (17,313 )
 

Provincial capital tax

    1,504  
 

Interest expense

    (13,735 )
 

Interest and sundry expense

    (3,734 )
 

Loss on derivative financial instruments

    (1,936 )
 

Foreign currency translation gain

    11,120  
                           
 

Loss before income and mining taxes

    (23,460 )
 

Income and mining taxes expense

    (920 )
                           
 

Net loss for the period

  $ (24,380 )
                           


 

 
Six Months Ended
June 30, 2014
  Revenues from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Segment
Income
(Loss)
 
 

Northern Business:

                         
 

LaRonde mine

  $ 165,864   $ (94,927 ) $   $ 70,937  
 

Lapa mine

    54,096     (30,096 )       24,000  
 

Goldex mine

    54,072     (29,819 )       24,253  
 

Meadowbank mine

    343,576     (142,961 )       200,615  
 

Canadian Malartic mine (note 16)

    21,274     (20,727 )       547  
 

Kittila mine

    89,571     (56,532 )       33,039  
                     
 

Total Northern Business

  $ 728,453   $ (375,062 ) $   $ 353,391  
                     
 

Southern Business:

                         
 

Pinos Altos mine

  $ 133,840   $ (61,919 ) $   $ 71,921  
 

Creston Mascota deposit at Pinos Altos

    27,776     (12,929 )       14,847  
 

La India mine

    39,492     (13,187 )       26,305  
                     
 

Total Southern Business

  $ 201,108   $ (88,035 )     $ 113,073  
                     
 

Exploration

  $   $   $ (20,970 ) $ (20,970 )
                     
 

Segments totals

  $ 929,561   $ (463,097 ) $ (20,970 ) $ 445,494  
                     
 

Total segments income

  $ 445,494  
 

Corporate and other:

       
 

Amortization of property, plant and mine development

    (151,107 )
 

General and administrative

    (52,030 )
 

Impairment loss on available-for-sale securities

    (2,419 )
 

Interest expense

    (31,666 )
 

Interest and sundry expense

    (2,953 )
 

Gain on derivative financial instruments

    1,984  
 

Gain on sale of available-for-sale securities

    5,289  
 

Foreign currency translation loss

    (326 )
                           
 

Income before income and mining taxes and other items

    212,266  
 

Income and mining taxes expense

    (63,413 )
 

Loss on equity investment

    (2,325 )
                           
 

Net income for the period

  $ 146,528  
                           


 

 
Six Months Ended
June 30, 2013
  Revenues from
Mining
Operations
  Production
Costs
  Exploration and
Corporate
Development
  Segment
Income
(Loss)
 
 

Northern Business:

                         
 

LaRonde mine

  $ 166,194   $ (118,527 ) $   $ 47,667  
 

Lapa mine

    73,135     (34,704 )       38,431  
 

Meadowbank mine

    252,610     (183,725 )       68,885  
 

Kittila mine

    90,185     (45,341 )       44,844  
                     
 

Total Northern Business

  $ 582,124   $ (382,297 ) $   $ 199,827  
                     
 

Southern Business:

                         
 

Pinos Altos mine

  $ 163,909   $ (66,163 ) $   $ 97,746  
 

Creston Mascota deposit at Pinos Altos

    10,813     (7,544 )       3,269  
                     
 

Total Southern Business

  $ 174,722   $ (73,707 ) $   $ 101,015  
                     
 

Exploration

  $   $   $ (19,897 ) $ (19,897 )
                     
 

Segments totals

  $ 756,846   $ (456,004 ) $ (19,897 ) $ 280,945  
                     
 

Total segments income

  $ 280,945  
 

Corporate and other:

       
 

Amortization of property, plant and mine development

    (140,199 )
 

General and administrative

    (65,705 )
 

Impairment loss on available-for-sale securities

    (28,308 )
 

Provincial capital tax

    1,504  
 

Interest expense

    (27,651 )
 

Interest and sundry expense

    (3,946 )
 

Gain on derivative financial instruments

    1,046  
 

Foreign currency translation gain

    7,462  
                           
 

Income before income and mining taxes

    25,148  
 

Income and mining taxes expense

    (25,669 )
                           
 

Net loss for the period

  $ (521 )
                           


 

   
  Total Assets as at  
   
  June 30,
2014
  December 31,
2013
 
 

Northern Business:

             
 

LaRonde mine

  $ 873,458   $ 878,719  
 

Lapa mine

    77,778     78,293  
 

Goldex mine

    130,399     120,601  
 

Meadowbank mine

    640,662     711,387  
 

Meliadine project

    899,431     877,923  
 

Kittila mine

    908,394     870,332  
             
 

Total Northern Business

  $ 3,530,122   $ 3,537,255  
             
 

Southern Business:

             
 

Pinos Altos mine

  $ 579,023   $ 537,560  
 

Creston Mascota deposit at Pinos Altos

    86,790     86,185  
 

La India mine

    539,216     512,450  
             
 

Total Southern Business

  $ 1,205,029   $ 1,136,195  
             
 

Exploration

  $ 24,335   $ 19,838  
             
 

Corporate and other

  $ 310,208   $ 266,071  
             
 

Equity investment

  $ 1,638,784   $  
             
 

Total

  $ 6,708,478   $ 4,959,359  
             
ACQUISITIONS (Tables)
  •  

 

 

Cash paid for acquisition

  $ 462,728  
 

Agnico Eagle common shares issued for acquisition

    1,135,071  
 

Fair value of derivative financial instruments(i)

    29,166  
         
 

Total Agnico Eagle purchase price

  $ 1,626,965  
         

  • Note:

    (i)
    Represents 871,680 Agnico Eagle common shares held in depositary relating to convertible debentures acquired from Osisko.
  •  

 

 

Current assets

  $ 153,370  
 

Non-current assets

  $ 1,939,249  
 

Current liabilities

  $ 69,243  
 

Non-current liabilities

  $ 398,736  
 

Revenues from mining operations

  $ 21,885  
 

Operating margin(i)

  $ 2,886  
 

Net loss

  $ (2,325 )

  • Note:

    (i)
    Operating margin is calculated as revenues from mining operations less production costs.
 

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  
         
  •  

 

   
  Year Ended
December 31,
2013
 
   
  Unaudited
 
 

Pro forma net loss for the year

  $ (409,020 )
 

Pro forma net loss per share — basic

  $ (2.37 )
FAIR VALUE MEASUREMENT (Details) (Fair value measured on recurring basis, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Level 1
 
 
Financial assets:
 
 
Available-for-sale securities
$ 66,211 
$ 74,581 
Total financial assets
66,211 
74,581 
Financial liabilities:
 
 
Fair value of derivative financial instruments
33,385 
 
Level 2
 
 
Financial assets:
 
 
Trade receivables
57,800 
67,300 
Available-for-sale securities
5,327 
 
Fair value of derivative financial instruments
14,710 
5,590 
Total financial assets
77,837 
72,890 
Financial liabilities:
 
 
Fair value of derivative financial instruments
1,333 
467 
Total
 
 
Financial assets:
 
 
Trade receivables
57,800 
67,300 
Available-for-sale securities
71,538 
74,581 
Fair value of derivative financial instruments
14,710 
5,590 
Total financial assets
144,048 
147,471 
Financial liabilities:
 
 
Fair value of derivative financial instruments
$ 34,718 
$ 467 
PROPERTY, PLANT AND MINE DEVELOPMENT (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2014
Dec. 31, 2013
Property, Plant and Mine Development
 
 
Cost
$ 5,230,643 
$ 5,041,109 
Accumulated Amortization
1,163,547 
991,992 
Net Book Value
4,067,096 
4,049,117 
Mining properties
 
 
Property, Plant and Mine Development
 
 
Cost
1,375,973 
1,361,867 
Accumulated Amortization
121,256 
89,700 
Net Book Value
1,254,717 
1,272,167 
Plant and equipment
 
 
Property, Plant and Mine Development
 
 
Cost
2,557,739 
2,286,887 
Accumulated Amortization
780,592 
662,394 
Net Book Value
1,777,147 
1,624,493 
Mine development costs
 
 
Property, Plant and Mine Development
 
 
Cost
1,082,728 
1,038,564 
Accumulated Amortization
261,699 
239,898 
Net Book Value
821,029 
798,666 
Meliadine project
 
 
Property, Plant and Mine Development
 
 
Cost
214,203 
192,413 
Net Book Value
214,203 
192,413 
La India project
 
 
Property, Plant and Mine Development
 
 
Cost
 
161,378 
Net Book Value
 
$ 161,378 
SHAREHOLDERS' EQUITY (Details) (USD $)
3 Months Ended 6 Months Ended 3 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Mar. 31, 2014
RSU
Mar. 31, 2013
RSU
Shareholders' equity
 
 
 
 
 
 
Contribution by the company to employee benefit trust
 
 
 
 
$ 7,500,000 
$ 19,000,000 
Common shares outstanding at end of the period
208,524,366 
 
208,524,366 
 
 
 
Employee stock options (in shares)
12,150,710 
 
12,150,710 
 
 
 
RSU plan (in shares)
293,551 
 
293,551 
 
 
 
Common shares held in depositary relating to convertible debentures acquired from Osisko (in shares)
871,680 
 
871,680 
 
 
 
Maximum number of common shares (in shares)
221,840,307 
 
221,840,307 
 
 
 
Net income (loss) per share
 
 
 
 
 
 
Net income (loss) for the period
$ 37,676,000 
$ (24,380,000)
$ 146,528,000 
$ (521,000)
 
 
Weighted average number of common shares outstanding - basic (in shares)
185,718,000 
172,572,000 
179,845,000 
172,426,000 
 
 
Add: Dilutive impact of shares related to RSU plan (in shares)
346,000 
 
329,000 
 
 
 
Add: Dilutive impact of common shares held in depositary relating to convertible debentures acquired from Osisko
143,000 
 
72,000 
 
 
 
Weighted average number of common shares outstanding - diluted (in shares)
186,207,000 
172,572,000 
180,246,000 
172,426,000 
 
 
Net income (loss) per share - basic (in dollars per share)
$ 0.20 
$ (0.14)
$ 0.81 
$ 0.00 
 
 
Net income (loss) per share - diluted (in dollars per share)
$ 0.20 
$ (0.14)
$ 0.81 
$ 0.00 
 
 
SHAREHOLDERS' EQUITY (Details 2) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Cumulative Translation Adjustment
Dec. 31, 2013
Cumulative Translation Adjustment
Jun. 30, 2014
Available-for-sale Securities and Other Investments
Jun. 30, 2014
Derivative Financial Instruments
Jun. 30, 2014
Pension Benefits
Changes in accumulated other comprehensive loss by component
 
 
 
 
 
 
 
 
 
Accumulated other comprehensive (loss) income, beginning of period
 
 
$ (15,141)
 
$ (16,206)
$ (16,206)
$ 3,965 
$ (148)
$ (2,752)
Unrealized other comprehensive gain
 
 
27,616 
 
 
 
26,282 
1,334 
 
Income tax recovery impact
 
 
(352)
 
 
 
 
(352)
 
Reclassifications from accumulated other comprehensive (loss) income to the interim unaudited consolidated statements of income (loss) and comprehensive income (loss)
 
 
(2,065)
 
 
 
(2,870)
475 
330 
Income tax recovery impact
 
 
(212)
 
 
 
 
(125)
(87)
Other comprehensive income (loss) for the period
4,151 
(4,809)
24,987 
6,179 
 
 
23,412 
1,332 
243 
Accumulated other comprehensive (loss) income, end of period
$ 9,846 
 
$ 9,846 
 
$ (16,206)
$ (16,206)
$ 27,377 
$ 1,184 
$ (2,509)
STOCK-BASED COMPENSATION (Details) (CAD $)
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Number of Stock Options
 
 
Outstanding, end of period (in shares)
12,150,710 
 
Employee Stock Option Plan
 
 
Number of Stock Options
 
 
Outstanding, beginning of period (in shares)
11,283,535 
10,587,126 
Granted (in shares)
3,180,000 
2,803,000 
Exercised (in shares)
(377,425)
(213,500)
Forfeited (in shares)
(211,250)
(181,750)
Expired (in shares)
(1,724,150)
(1,340,885)
Outstanding, end of period (in shares)
12,150,710 
11,653,991 
Options exercisable, end of period (in shares)
7,739,210 
7,469,045 
Weighted Average Exercise Price
 
 
Outstanding, weighted average exercise price beginning of period (in Canadian dollars per share)
$ 56.02 
$ 56.60 
Granted, weighted average exercise price (in Canadian dollars per share)
$ 28.04 
$ 52.13 
Exercised, weighted average exercise price (in Canadian dollars per share)
$ 29.90 
$ 37.06 
Forfeited, weighted average exercise price (in Canadian dollars per share)
$ 52.24 
$ 60.68 
Expired - weighted-average exercise price (in Canadian dollars per share)
$ 62.64 
$ 54.86 
Outstanding, weighted average exercise price end of period (in Canadian dollars per share)
$ 48.63 
$ 56.02 
Options exercisable, weighted average exercise price end of period (in Canadian dollars per share)
$ 55.42 
$ 59.36 
STOCK-BASED COMPENSATION (Details 2) (Employee Stock Option Plan)
6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Employee Stock Option Plan
 
 
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)
1.56% 
1.51% 
Expected life of stock options
2 years 7 months 6 days 
2 years 8 months 12 days 
Expected volatility of Agnico Eagle's share price (as a percent)
42.50% 
35.00% 
Expected dividend yield (as a percent)
3.83% 
1.79% 
AVAILABLE-FOR-SALE SECURITIES (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Dec. 31, 2013
Schedule of available-for-sale securities
 
 
 
 
 
Estimated fair value
$ 71,538,000 
 
$ 71,538,000 
 
$ 74,581,000 
Proceeds from available-for-sale securities
39,500,000 
 
40,100,000 
 
 
Gain on sale of available-for-sale securities
5,000,000 
 
5,300,000 
 
 
Other than temporary impairment loss on available-for-sale securities
2,419,000 
17,313,000 
2,419,000 
28,308,000 
 
Available-for-sale securities in an unrealized gain position
 
 
 
 
 
Schedule of available-for-sale securities
 
 
 
 
 
Cost (net of impairments)
43,077,000 
 
43,077,000 
 
30,583,000 
Unrealized gains (losses) in accumulated other comprehensive income (loss)
 
 
27,786,000 
 
11,530,000 
Estimated fair value
70,863,000 
 
70,863,000 
 
42,113,000 
Available-for-sale securities in an unrealized loss position
 
 
 
 
 
Schedule of available-for-sale securities
 
 
 
 
 
Cost (net of impairments)
1,006,000 
 
1,006,000 
 
39,933,000 
Unrealized gains (losses) in accumulated other comprehensive income (loss)
 
 
(331,000)
 
(7,465,000)
Estimated fair value
675,000 
 
675,000 
 
32,468,000 
Other than temporary impairment loss on available-for-sale securities
$ 2,400,000 
$ 17,300,000 
$ 2,400,000 
$ 28,300,000 
 
LONG-TERM DEBT (Details) (USD $)
3 Months Ended 6 Months Ended 0 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 0 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Jun. 22, 2010
Credit Facilities
item
Jun. 30, 2014
Credit Facilities
Jun. 30, 2013
Credit Facilities
Jun. 30, 2014
Credit Facilities
Jun. 30, 2013
Credit Facilities
Dec. 31, 2013
Credit Facilities
Jun. 30, 2014
Guaranteed senior unsecured notes
Jun. 30, 2013
Guaranteed senior unsecured notes
Jun. 30, 2014
Guaranteed senior unsecured notes
Jun. 30, 2013
Guaranteed senior unsecured notes
Jul. 24, 2012
2012 Notes
Jul. 24, 2012
Series A maturing in 2022
Jul. 24, 2012
Series B maturing in 2024
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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
 
 
520,000,000 
 
520,000,000 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
Availability under credit facility
 
 
 
 
 
678,900,000 
 
678,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outstanding notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
 
 
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% 
 
 
 
Long-term debt interest costs
13,400,000 
12,400,000 
26,600,000 
24,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expenditures capitalized to construction property, plant and mine development
200,000 
1,200,000 
400,000 
2,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash interest payments
22,305,000 
21,715,000 
30,456,000 
28,547,000 
 
800,000 
200,000 
1,900,000 
200,000 
 
19,800,000 
19,800,000 
24,700,000 
24,700,000 
 
 
 
 
 
 
 
Cash standby fees
 
 
 
 
 
$ 1,400,000 
$ 1,200,000 
$ 2,800,000 
$ 2,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL INSTRUMENTS (Details) (USD $)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Osisko
Jun. 30, 2014
Osisko
Jun. 30, 2014
Convertible debt
Jun. 30, 2014
Convertible debt
Jun. 30, 2014
Warrants
Jun. 30, 2013
Warrants
Jun. 30, 2014
Warrants
Jun. 30, 2013
Warrants
Jun. 30, 2014
Metal
item
Dec. 31, 2013
Metal
item
Jun. 30, 2014
Heating oil
item
Jun. 30, 2014
Foreign exchange zero cost collars
Designated as hedges
Jun. 30, 2014
Foreign exchange zero cost collars
Designated as hedges
2014 expenditures
Jun. 30, 2014
Call options
Sell
item
Jun. 30, 2013
Call options
Sell
item
Jun. 30, 2014
Call options
Sell
item
Jun. 30, 2013
Call options
Sell
item
Dec. 31, 2013
Expected 2013 diesel fuel exposure
Designated as hedges
Heating oil
gal
Jun. 30, 2014
Equity derivative
Jun. 30, 2013
Equity derivative
Jun. 30, 2014
Equity derivative
Jun. 30, 2013
Equity derivative
Financial instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net premium payable to counterparty
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
Amount of expenditures hedged
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
120,000,000 
 
 
 
 
 
 
 
 
 
Number of derivative instruments expired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of derivative instruments outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notional amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,500,000 
 
 
 
 
Average price (in dollars per gallon)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.99 
 
 
 
 
Percentage of Meadowbank's expected exposure
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
55.00% 
 
 
 
 
Common shares held in depositary relating to convertible debentures acquired from Osisko (in shares)
871,680 
 
871,680 
 
871,680 
871,680 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(loss) gain on derivative financial instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums realized on written foreign exchange call options
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,178,000 
789,000 
2,010,000 
1,473,000 
 
 
 
 
 
Mark-to-market gain (loss)
 
 
 
 
 
 
(4,219,000)
(4,219,000)
2,197,000 
(3,223,000)
5,326,000 
(1,758,000)
 
 
 
 
 
 
 
 
 
 
(500,000)
498,000 
(948,000)
1,331,000 
Realized loss on derivative financial instruments
 
 
 
 
 
 
 
 
 
 
(185,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) gain on derivative financial instruments
$ (1,344,000)
$ (1,936,000)
$ 1,984,000 
$ 1,046,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COMMITMENTS AND CONTINGENCIES (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2014
COMMITMENTS AND CONTINGENCIES
 
Guarantees provided in the form of letters of credit
$ 180.0 
SEGMENTED INFORMATION (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2013
Jun. 30, 2014
Jun. 30, 2013
Dec. 31, 2013
item
Jun. 16, 2014
Canadian Malartic mine
Jun. 30, 2014
Northern Business
Jun. 30, 2013
Northern Business
Jun. 30, 2014
Northern Business
Jun. 30, 2013
Northern Business
Dec. 31, 2013
Northern Business
Jun. 30, 2014
Northern Business
LaRonde mine
Jun. 30, 2013
Northern Business
LaRonde mine
Jun. 30, 2014
Northern Business
LaRonde mine
Jun. 30, 2013
Northern Business
LaRonde mine
Dec. 31, 2013
Northern Business
LaRonde mine
Jun. 30, 2014
Northern Business
Lapa mine
Jun. 30, 2013
Northern Business
Lapa mine
Jun. 30, 2014
Northern Business
Lapa mine
Jun. 30, 2013
Northern Business
Lapa mine
Dec. 31, 2013
Northern Business
Lapa mine
Jun. 30, 2014
Northern Business
Goldex mine
Jun. 30, 2014
Northern Business
Goldex mine
Dec. 31, 2013
Northern Business
Goldex mine
Jun. 30, 2014
Northern Business
Meadowbank mine
Jun. 30, 2013
Northern Business
Meadowbank mine
Jun. 30, 2014
Northern Business
Meadowbank mine
Jun. 30, 2013
Northern Business
Meadowbank mine
Dec. 31, 2013
Northern Business
Meadowbank mine
Jun. 30, 2014
Northern Business
Canadian Malartic mine
Jun. 30, 2014
Northern Business
Canadian Malartic mine
Jun. 30, 2014
Northern Business
Meliadine project
Dec. 31, 2013
Northern Business
Meliadine project
Jun. 30, 2014
Northern Business
Kittila mine
Jun. 30, 2013
Northern Business
Kittila mine
Jun. 30, 2014
Northern Business
Kittila mine
Jun. 30, 2013
Northern Business
Kittila mine
Dec. 31, 2013
Northern Business
Kittila mine
Jun. 30, 2014
Southern Business
Jun. 30, 2013
Southern Business
Jun. 30, 2014
Southern Business
Jun. 30, 2013
Southern Business
Dec. 31, 2013
Southern Business
Jun. 30, 2014
Southern Business
Pinos Altos mine
Jun. 30, 2013
Southern Business
Pinos Altos mine
Jun. 30, 2014
Southern Business
Pinos Altos mine
Jun. 30, 2013
Southern Business
Pinos Altos mine
Dec. 31, 2013
Southern Business
Pinos Altos mine
Jun. 30, 2014
Southern Business
Creston Mascota deposit at Pinos Altos
Jun. 30, 2013
Southern Business
Creston Mascota deposit at Pinos Altos
Jun. 30, 2014
Southern Business
Creston Mascota deposit at Pinos Altos
Jun. 30, 2013
Southern Business
Creston Mascota deposit at Pinos Altos
Dec. 31, 2013
Southern Business
Creston Mascota deposit at Pinos Altos
Jun. 30, 2014
Southern Business
La India Mine Project
Jun. 30, 2014
Southern Business
La India Mine Project
Dec. 31, 2013
Southern Business
La India Mine Project
Jun. 30, 2014
Exploration
Jun. 30, 2013
Exploration
Jun. 30, 2014
Exploration
Jun. 30, 2013
Exploration
Dec. 31, 2013
Exploration
Jun. 30, 2014
Corporate and Other Income (Loss)
Jun. 30, 2013
Corporate and Other Income (Loss)
Jun. 30, 2014
Corporate and Other Income (Loss)
Jun. 30, 2013
Corporate and Other Income (Loss)
Dec. 31, 2013
Corporate and Other Income (Loss)
SEGMENTED INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum required percentage of combined revenue, profit or loss or total assets of reported operating segments
10.00% 
 
10.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of business units
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment reporting Information
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ownership percentage
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues from Mining Operations
$ 437,794 
$ 336,424 
$ 929,561 
$ 756,846 
 
 
$ 340,187 
$ 250,298 
$ 728,453 
$ 582,124 
 
$ 73,160 
$ 74,996 
$ 165,864 
$ 166,194 
 
$ 23,406 
$ 34,737 
$ 54,096 
$ 73,135 
 
$ 28,702 
$ 54,072 
 
$ 152,536 
$ 122,518 
$ 343,576 
$ 252,610 
 
$ 21,274 
$ 21,274 
 
 
$ 41,109 
$ 18,047 
$ 89,571 
$ 90,185 
 
$ 97,607 
$ 86,126 
$ 201,108 
$ 174,722 
 
$ 63,357 
$ 76,219 
$ 133,840 
$ 163,909 
 
$ 14,237 
$ 9,907 
$ 27,776 
$ 10,813 
 
$ 20,013 
$ 39,492 
 
 
 
 
 
 
 
 
 
 
 
Production Costs
(239,006)1
(225,951)1
(463,097)1
(456,004)1
 
 
(194,737)
(187,013)
(375,062)
(382,297)
 
(45,340)
(60,624)
(94,927)
(118,527)
 
(14,643)
(18,094)
(30,096)
(34,704)
 
(15,028)
(29,819)
 
(71,892)
(90,136)
(142,961)
(183,725)
 
(20,727)
(20,727)
 
 
(27,107)
(18,159)
(56,532)
(45,341)
 
(44,269)
(38,938)
(88,035)
(73,707)
 
(30,033)
(34,511)
(61,919)
(66,163)
 
(6,901)
(4,427)
(12,929)
(7,544)
 
(7,335)
(13,187)
 
 
 
 
 
 
 
 
 
 
 
Exploration and Corporate Development
(11,552)
(11,326)
(20,970)
(19,897)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(11,552)
(11,326)
(20,970)
(19,897)
 
 
 
 
 
 
Segments totals
187,236 
99,147 
445,494 
280,945 
 
 
145,450 
63,285 
353,391 
199,827 
 
27,820 
14,372 
70,937 
47,667 
 
8,763 
16,643 
24,000 
38,431 
 
13,674 
24,253 
 
80,644 
32,382 
200,615 
68,885 
 
547 
547 
 
 
14,002 
(112)
33,039 
44,844 
 
53,338 
47,188 
113,073 
101,015 
 
33,324 
41,708 
71,921 
97,746 
 
7,336 
5,480 
14,847 
3,269 
 
12,678 
26,305 
 
(11,552)
(11,326)
(20,970)
(19,897)
 
 
 
 
 
 
Amortization of property, plant and mine development
(77,570)
(70,128)
(151,107)
(140,199)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(77,570)
(70,128)
(151,107)
(140,199)
 
General and administrative
(24,791)
(28,385)
(52,030)
(65,705)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(24,791)
(28,385)
(52,030)
(65,705)
 
Impairment loss on available-for-sale securities
(2,419)
(17,313)
(2,419)
(28,308)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2,419)
(17,313)
(2,419)
(28,308)
 
Provincial Capital Tax
 
1,504 
 
1,504 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,504 
 
1,504 
 
Interest expense
(15,731)
(13,735)
(31,666)
(27,651)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(15,731)
(13,735)
(31,666)
(27,651)
 
Interest and sundry expense
(3,370)
(3,734)
(2,953)
(3,946)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3,370)
(3,734)
(2,953)
(3,946)
 
Gain (Loss) on derivative financial instruments
(1,344)
(1,936)
1,984 
1,046 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1,344)
(1,936)
1,984 
1,046 
 
Gain on sale of available-for-sale securities
5,016 
 
5,289 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,016 
 
5,289 
 
 
Foreign Currency Translation (Loss) Gain
(8,666)
11,120 
(326)
7,462 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(8,666)
11,120 
(326)
7,462 
 
Income (loss) before income and mining taxes and other items
58,361 
(23,460)
212,266 
25,148 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
58,361 
(23,460)
212,266 
25,148 
 
Income and mining taxes expense
(18,360)
(920)
(63,413)
(25,669)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(18,360)
(920)
(63,413)
(25,669)
 
Loss on equity investment
(2,325)
 
(2,325)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(2,325)
 
(2,325)
 
 
Net income (loss) for the period
37,676 
(24,380)
146,528 
(521)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
37,676 
(24,380)
146,528 
(521)
 
Equity investment
1,638,784 
 
1,638,784 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
$ 6,708,478 
 
$ 6,708,478 
 
$ 4,959,359 
 
$ 3,530,122 
 
$ 3,530,122 
 
$ 3,537,255 
$ 873,458 
 
$ 873,458 
 
$ 878,719 
$ 77,778 
 
$ 77,778 
 
$ 78,293 
$ 130,399 
$ 130,399 
$ 120,601 
$ 640,662 
 
$ 640,662 
 
$ 711,387 
 
 
$ 899,431 
$ 877,923 
$ 908,394 
 
$ 908,394 
 
$ 870,332 
$ 1,205,029 
 
$ 1,205,029 
 
$ 1,136,195 
$ 579,023 
 
$ 579,023 
 
$ 537,560 
$ 86,790 
 
$ 86,790 
 
$ 86,185 
$ 539,216 
$ 539,216 
$ 512,450 
$ 24,335 
 
$ 24,335 
 
$ 19,838 
$ 310,208 
 
$ 310,208 
 
$ 266,071 
RECLAMATION PROVISION (Details) (USD $)
6 Months Ended
Jun. 30, 2014
Dec. 31, 2013
Jun. 30, 2014
Goldex mine
Environmental remediation liability
 
 
 
Environmental remediation
 
 
$ 2,000,000 
Environmental remediation liability
 
 
12,600,000 
Environmental remediation liability, current
$ 1,934,000 
$ 3,452,000 
$ 900,000 
ACQUISITIONS (Details) (USD $)
0 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 16, 2014
Jun. 30, 2014
Jun. 30, 2014
Purchase price
 
 
 
 
Common shares held in depositary relating to convertible debentures acquired from Osisko (in shares)
 
 
871,680 
871,680 
Osisko
 
 
 
 
Acquisitions
 
 
 
 
Percentage of interest acquired jointly
 
50.00% 
 
 
Cash received in exchange for each outstanding common share (in dollars per share)
 
$ 1.045 
 
 
Number of common shares received in exchange for each outstanding common share
 
0.07264 
 
 
Direct transaction costs
$ 16,700,000 
 
$ 16,700,000 
$ 16,700,000 
Purchase price
 
 
 
 
Cash paid for acquisition
 
462,728,000 
 
 
Agnico Eagle common shares issued for acquisition
 
1,135,071,000 
 
 
Fair value of derivative financial instruments
 
29,166,000 
 
 
Total Agnico Eagle purchase price
 
1,626,965,000 
 
 
Common shares held in depositary relating to convertible debentures acquired from Osisko (in shares)
 
 
871,680 
871,680 
Summary of financial information relating to equity method investment
 
 
 
 
Current assets
153,370,000 
 
153,370,000 
153,370,000 
Non-current assets
1,939,249,000 
 
1,939,249,000 
1,939,249,000 
Current liabilities
69,243,000 
 
69,243,000 
69,243,000 
Non-current liabilities
398,736,000 
 
398,736,000 
398,736,000 
Revenues from mining operations
21,885,000 
 
 
 
Operating margin
2,886,000 
 
 
 
Net loss
(2,325,000)
 
 
 
Osisko |
Osisko Gold Royalties Ltd.
 
 
 
 
Acquisitions
 
 
 
 
Number of common shares received in exchange for each outstanding common share
 
0.1 
 
 
Net smelter royalty on the Canadian Malartic Mine transferred (as a percent)
 
5.00% 
 
 
Cash transferred to Osisko Gold Royalties Ltd
 
$ 157,000,000 
 
 
Net smelter royalty on Kirkland Lake assets, Hammond Reef project and certain other properties transferred (as a percent)
 
2.00% 
 
 
Osisko |
Agnico Eagle and Yamana
 
 
 
 
Acquisitions
 
 
 
 
Percentage of interest acquired jointly
 
100.00% 
 
 
Cash received in exchange for each outstanding common share (in dollars per share)
 
$ 2.09 
 
 
Osisko |
Yamana
 
 
 
 
Acquisitions
 
 
 
 
Percentage of interest acquired jointly
 
50.00% 
 
 
Number of common shares received in exchange for each outstanding common share
 
0.26471 
 
 
ACQUISITIONS (Details 2) (USD $)
0 Months Ended 12 Months Ended
Jun. 30, 2014
Dec. 31, 2013
May 16, 2013
Urastar
Dec. 31, 2013
Urastar
Total purchase price:
 
 
 
 
Cash paid for acquisition
 
 
$ 10,127,000 
 
Transaction costs associated with the acquisition
 
 
 
700,000 
Fair value of assets acquired and liabilities assumed:
 
 
 
 
Mining properties
 
 
1,994,000 
 
Goodwill
39,017,000 
39,017,000 
9,802,000 
 
Cash and cash equivalents
 
 
76,000 
 
Trade receivables
 
 
731,000 
 
Other current assets
 
 
12,000 
 
Plant and equipment
 
 
2,000 
 
Accounts payable and accrued liabilities
 
 
(791,000)
 
Other liabilities
 
 
(1,573,000)
 
Deferred tax liability
 
 
(126,000)
 
Net assets acquired
 
 
10,127,000 
 
Pro forma results of operations
 
 
 
 
Pro forma net loss for the year
 
 
 
$ (409,020,000)
Pro forma net loss per share - basic (in dollars per share)
 
 
 
$ (2.37)
GENERAL AND ADMINISTRATIVE (Details) (Meadowbank Mine Fire, USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2011
Mar. 31, 2011
Jun. 30, 2014
Dec. 31, 2013
Meadowbank Mine Fire
 
 
 
 
GENERAL AND ADMINISTRATIVE
 
 
 
 
Loss on disposal due to kitchen fire at Meadowbank Mine
$ 6.9 
 
 
 
Costs related to disposal of property
7.4 
 
 
 
Insurance receivable
11.2 
11.2 
   
0.7 
Loss due to fire recognized in the General and Administrative
 
3.1 
 
 
Insurance proceeds received
 
 
$ 0.7 
$ 9.8 
RELATED PARTY TRANSACTIONS (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 6 Months Ended
Jun. 30, 2014
Gold
Jun. 30, 2014
Silver
Jun. 30, 2014
Canadian Malartic General Partnership
Related party transactions
 
 
 
Percentage of net metal content to be purchased
 
 
50.00% 
Purchases
$ 20.8 
$ 0.3 
 
Amount payable for gold and silver purchases
 
 
$ 21.1 
SUBSEQUENT EVENTS (Details) (Subsequent event)
In Millions, except Share data, unless otherwise specified
0 Months Ended
Jul. 30, 2014
USD ($)
Jul. 10, 2014
Pershimco
CAD ($)
Subsequent Events
 
 
Payment of a quarterly cash dividend (in dollars per share)
$ 0.08 
 
Warrants exercised (in shares)
 
19,800,000 
Exercise price (in Canadian dollars per share)
 
$ 0.40 
Payment made to exercise warrants
 
$ 7.92 
Common shares held
 
39,600,000 
ONGOING LITIGATION (Details) (CAD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 1 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended
Jun. 6, 2014
Clifton
Canadian Malartic Corporation Litigation
Feb. 6, 2012
Goldex mine
item
Nov. 30, 2011
Goldex mine
item
Jun. 30, 2014
Goldex Mine Ontario Claim
Apr. 12, 2012
Goldex Mine Claim 2
item
Jun. 30, 2014
Goldex Mine Claim 2
Jun. 6, 2014
Obligation to lend loan
Clifton
Canadian Malartic Corporation Litigation
Securities class action lawsuits
 
 
 
 
 
 
 
Number of putative class actions against entity
 
 
 
 
 
 
Number of complaints to be consolidated
 
 
 
 
 
 
Number of directors served with motion regarding Class Action
 
 
 
 
 
 
Damages sought
$ 22.5 
 
 
$ 250.0 
 
$ 100.0 
$ 22.5 
Maximum number of Quebec resident employees in entities on behalf of which the class action is pursued
 
 
 
 
50 
 
 
Common shares issued for repayment of loan
6,961,538 
 
 
 
 
 
 
Additional damages sought
$ 222.0