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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NORTH AMERICAN PALLADIUM LTD
TSE SYMBOL: PDL
NASDAQ SYMBOL: POLCF PDLCF
APRIL 28, 1997
North American Palladium Ltd. - Year End Results
THUNDER BAY, ONTARIO--North American Palladium Ltd. (NASDAQ and
TSE), today released the financial results for the year ended
December 31, 1996. The Company reported a net loss of $28,730,000
or $2.45 CDN per share (1995 - loss of $2,473,000 or $0.22 CDN per
share), which included depreciation and amortization of
$17,347,000 (1995 - $4,473,000). The net loss for the three
months ended December 31, 1996 of $20,427,000 or $1.74 CDN per
share (1995 - loss of $3,395,000 or $0.30 CDN per share) included
a loss on foreign exchange of $561,000 with a foreign exchange
loss of $356,000 for the full year. Cash provided by operating
activities for the year totalled $1,488,000 (1995 -$9,410,000).
/T/
NORTH AMERICAN PALLADIUM LTD.
CORPORATE REPORT
(Canadian Funds in Thousands of Dollars Except Share and Per
Share Amounts)
Three Months Ended Year Ended
December 31 December 31
1996 1995 1996 1995
Revenue from metal
sales 5,092 5,237 20,249 27,351
Income from mining
operations (18,119) (1,133) (22,152) 1,462
Net Loss (20,427) (3,395) (28,730) (2,473)
Average shares
outstanding 11,746,767 11,600,169 11,710,814 11,528,133
Net Profit (Loss)
per share (1.74) (0.30) (2.45) (0.22)
Figures in parentheses are losses
/T/
The Company operates a platinum group metals property northwest of
Thunder Bay, Ontario. Fixed assets, mining leases and deferred
expenditures, net of depreciation and amortization, at December
31, 1996 total $50,228,000, $13,854,000 and $26,762,000
respectively.
The financial statements for the year ended December 31, 1996
include the accounts of the Company and its wholly owned
subsidiaries Lac des Iles Mines Ltd. and North American Metals
Management Ltd.
The Company is making strides toward its crusher installation as
it had nearly completed the mechanical installation of the
Secondary System and is well down the line on the Primary System.
Several delays have been encountered ranging from weather to
waiting on materials to contractor delays, but the system is
expected to be on-line in the month of May.
The new pressure filter was connected and in place in late
December and the overall moisture in the concentrate has dropped
to the 12 percent range from the 20 percent range previously
experienced. The saving is expected to be equal to the
projections at the time it was decided to install the filter.
The crushing contractor suffered major failures during the period
from November 1, 1996 through March 1, 1997 resulting in Mill
productivity falling off considerably. During that four-month
period, the Company was able to process 214,374 tons of ore.
During the same period of 1995-96, the Company processed a total
of 174,993 tons, but overall quality was slightly higher.
The Company opted to write off a number of items, including a
portion of the pre-1992 cost, which were of questionable value.
Accordingly, the loss for the year was $28,730,000, which included
an allowance for deprecation, depletion and amortization of
$17,347,000, $13,141,000 of which resulted from a change in the
basis of accounting amortization. Another $1,600,000 was taken as
a direct write-down (non-cash) of fixed assets relating to retired
crushers and similar items. Going forward, the Company will have
its infrastructure in place, allowing the mine to operate at a
considerably lower cost.
The current year should see all capital improvements in place,
operating costs lowered, the price for products improved and
productivity increased.
/T/
Production Statistics
for the year ended December 31, 1996
PRODUCTION:
Palladium (troy oz.) 60,426
Platinum (troy oz.) 4,285
Gold (troy oz.) 3,811
Copper (lbs) 941,105
Nickel (lbs) 740,689
Tons Ore Milled 757,248
Tons Concentrate Produced 8,574
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
North American Palladium Ltd.
C. D. McDoulett, Jr.
President and CEO
(807) 345-4479
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