| |
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NORTH AMERICAN PALLADIUM LTD
TSE SYMBOL: PDL
NASDAQ SYMBOL: PDLCF POLCF
DECEMBER 6, 1996
North American Palladium Ltd. Breaks Two Production
Records
THUNDER BAY, ONTARIO--North American Palladium Ltd. (NASDAQ and
TSE), today released the financial results for the Nine Months
ended September 30, 1996. The Company reported a net loss of
$8,303,000 or $0.71 CDN per share (1995 - profit of $922,000 or
$0.08 CDN per share), which included depreciation and amortization
of $3,769,000 (1995 - $3,352,000). The net loss for the three
months ended September 30, 1996 of $3,414,000 or $0.29 CDN per
share (1995 - profit of $1,591,000 or $0.14 CDN per share). Cash
provided by operating activities for the nine months totalled $
224,000 (1995 - $7,997,000).
/T/
NORTH AMERICAN PALLADIUM LTD.
CORPORATE REPORT
(Canadian Funds in Thousands of Dollars Except Share and Per
Share Amounts)
Year Ended Three Months Ended
December 31, September 30,
1995 1996 1995
Revenue from metal sales $ 27,351 $ 4,791 $ 9,320
Income (loss) from mining
operations 1,462 (1,957) 1,696
Net Profit (Loss) (2,473) (3,414) 1,591
Average shares
outstanding 11,528,133 11,737,588 11,551,392
Net Profit (Loss) per
share (0.22) (0.29) 0.14
Nine Months Ended
September 30,
1996 1995
Revenue from metal sales $ 15,157 $ 22,114
Income (loss) from mining operations (4,033) 2,595
Net Profit (Loss) (8,303) 922
Average shares outstanding 11,698,491 11,502,702
Net Profit (Loss) per share (0.71) 0.08
Figures in parentheses are losses
/T/
The Company is currently operating a platinum group metals
property northwest of Thunder Bay, Ontario. Fixed assets, Mining
leases and deferred expenditures, net of depreciation and
amortization, at September 30, 1996 total $43,228,000, $14,030,000
and $37,840,000 respectively.
The financial statements for the period ended September 30, 1996
include the accounts of the Company and its wholly owned
subsidiaries Lac des Iles Mines Ltd. and North American Metals
Management Ltd.
In commenting on the third quarter results, C.D. McDoulett, Jr.,
President and Chief Executive Officer, noted that revenues for the
quarter and year to date when compared with 1995 reflect lower
metal prices and quantities, the latter as a result of catch-up
waste removal in both the Roby and "C" Zones and removal of the
old ramp in the center of the Roby Zone pit. Ore head grades have
continued to improve gradually but still run below projected mine
averages as development work, including ramp removal, has
continued in production areas. Concentration ratios have improved
to over 100:1 tons of concentrate without hurting recoveries.
The Company continues to make progress on its 1996 Capital
Expansion Program. The Company said Kaiser-Francis Oil Company of
Tulsa, Oklahoma, its principal lender and 18 percent shareholder,
has provided the required funds for the capital program.
In commenting on the status of the major Capital Expansion
Projects, Mr. McDoulett stated that the Power Line running from
Silver Falls on Dog Lake to the Lac des Iles mine site was
completed in October 1996. At present work is continuing on the
hook-up of the power line to the Lac des Iles camp, laboratory and
maintenance facilities, which are projected to be hooked-up by
December 1, 1996. The mill and crushing complex are expected to
be hooked-up as other vital equipment is delivered.
Work is continuing on the construction of the new crushing complex
with mechanical work to be completed by December 31, 1996 on the
secondary crushing plant and by January 15, 1997 on the primary
plant. Electrical hook-up will be accomplished after the
completion of the mechanical phase.
Other phases of the Capital Program are being completed as the
necessary materials are delivered. Work in progress includes the
installation of the pressure filter in the mill which was
delivered in September 1996, completion of the reagent supply
building and the addition of flotation cells. All small projects
are expected to be completed within the next few weeks.
The Company also said today that a record tonnage of 228,322 short
tons was put through the mill in the third calendar quarter of
1996, breaking the previous record established in the third
quarter of 1995 of 207,500 tons. An additional record was set in
the month of July, 1996 as 80,714 tons of ore were put through the
mill. Subsequent to September 30, 1996, 73,736 tons were
processed in October and 47,524 tons ran through the mill as of
Nov 24, 1996. Fourth quarter is not expected to exceed the third
quarter but is expected to exceed 210,000 tons. October 15, 1996
was a mile-stone day as the Lac des Iles mine ran its 2 millionth
ton of concentrate through the mill.
In other news the Company would like to announce the North
American Palladium Ltd. World Wide Web Internet Site at
http://www.napalladium.ca.
The Company would also like to announce a new TOLL FREE number,
1-888-272-9123, accessible 24 hours a day, 7 days a week to obtain
up-to-date stock quotes, Financial Statements and Corporate
Information requests by fax or mail. This service will be made
available on December 20, 1996.
/T/
PRODUCTION STATISTICS
3rd Quarter 1996
PRODUCTION:
Palladium (troy oz.) 15,402
Platinum (troy oz.) 1,209
Gold (troy oz.) 1,041
Copper (lbs) 257,246
Nickel (lbs) 179,670
Tons Ore Mined 278,880
Tons Ore Crushed 229,461
Tons Ore Milled 228,322
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
North American Palladium Ltd
C.D. McDoulett, Jr.
President and CEO
(807) 345-4479
 |
