AVAILABLE-FOR-SALE SECURITIES

6 Months Ended

Jun. 30, 2011

7. AVAILABLE-FOR-SALE SECURITIES

During the three months ended June 30, 2011, the Company received proceeds of $0.5 million (2010 — nil) from the sale of certain available-for-sale securities and recognized a gain before income taxes of $0.4 million (2010 — nil).

During the six months ended June 30, 2011, the Company received proceeds of $9.3 million (2010 — $0.5 million) from the sale of certain available-for-sale securities and recognized a gain before taxes of $4.8 million (2010 — $0.3 million).

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

	June 30, 2011			December 31, 2010

Available-for-sale securities in an unrealized gain position
Cost	$	47,689		$	50,958
Unrealized gains in accumulated other comprehensive income		48,381			48,151

Estimated fair value		96,070			99,109

Available-for-sale securities in an unrealized loss position
Cost		6,038			—
Unrealized losses in accumulated other comprehensive income		(1,454	)		—

Estimated fair value		4,584			—

Total estimated fair value of available-for-sale securities	$	100,654		$	99,109

The Company's investments in available-for-sale securities consist primarily of investments in common shares of entities in the mining industry. Within the Company's portfolio of common shares in the mining industry approximately 5 percent of the total fair value of investments are in an unrealized loss position. The Company evaluated the near-term prospects of the issuers in relation to the severity and duration (less than 3 months) of the impairment. Based on that evaluation and the Company's ability and intent to hold those investments for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company does not consider those investments to be other-than-temporarily impaired as at June 30, 2011.

- Definition

This item represents the entire disclosure related to Investments in Certain Debt and Equity Securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References+ Details