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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: NORTH AMERICAN PALLADIUM LTD
TSE SYMBOL: PDL
NASDAQ SYMBOL: POLCF PDLCF
MAY 30, 1997
North American Palladium Ltd. - First Quarter 1997
Results
THUNDER BAY, ONTARIO--North American Palladium Ltd. (NASDAQ &
TSE), today released the financial results for the three months
ended March 31, 1997. The Company reported a net loss of
$5,869,000 or $0.50 CDN per share (1996-loss of $2,084,000 or
$0.18 CDN per share), for the period which included depreciation
and amortization of $1,583,000 (1996 $1,031,000). The net loss
for the three months ended March 31, 1997 included a loss on
foreign exchange of $1,061,000 (1996 gain of $200,000). Interest
on short term debt for the three months totalled $1,431,000 vs
$686,000 for the comparable quarter in 1996.
/T/
NORTH AMERICAN PALLADIUM LTD.
CORPORATE REPORT
(Canadian Funds in Thousands of Dollars Except Shares and Per
Share Amounts)
Three Months Ended Year Ended
March 31, December 31,
1997 1996 1996
-----------------------------------------------------------
Revenue from metal sales 3,784 3,718 20,249
Loss from mining operations (3,292) (1,193) (22,152)
Net loss (5,869) (2,084) (28,730)
Average shares
outstanding 11,796,150 11,655,257 11,710,814
Net loss per share (0.50) (0.18) (2.45)
-----------------------------------------------------------
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 March 31,
1997 total $52,521,000, $13,566,000 and $27,054,000 respectively.
The financial statements for the period ended March 31, 1997
include the accounts of the Company and its wholly owned
subsidiaries Lac des Iles Mines Ltd. and North American Metals
Management Ltd.
During the first quarter of 1997, the Company experienced a
significant foreign exchange loss which is as fictitious as prior
years gains in that it relates to debt that was not repaid, and
thus resulted in no actual realized loss.
The Company also realized significantly lower smelting costs for
the period as a direct result of the Pressure Filter installation
completed in December 1996. The Company was able to ship more
concentrate and incurred a zero moisture penalty.
The Company expects to start its 1997 Drilling Program in July
with the first objective being a deeper area in the "C" Zone.
Further drilling is expected on the adjacent areas to the two open
pits which government geologists believe is on the same PGM trend
as the Roby and "C" Zone thus expecting to significantly increase
the proven and probable ore reserves.
The Crushing System is expected to be fully operational by the
first week of July, with the Secondary System completed by the
first week in June and the Primary crusher completed in late June.
The crushing system is the last of the 1996 Capital Projects to
be completed and with this final installation, the Company expects
to raise revenues significantly, increase production and decrease
production costs.
In commenting on the Company's progress, C.D. McDoulett, Jr.,
President and CEO said "the second half of 1997 is going to be the
start of a new era for our Company. The Capital projects program
has greatly exceeded our expectations and with the current price
of palladium we expect this to be a very successful and productive
third and forth quarter."
/T/
PRODUCTION STATISTICS
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First Quarter
Palladium (troy oz.) 13,064
Platinum (troy oz.) 861
Gold (troy oz.) 812
Copper (lbs) 208,761
Nickel (lbs) 178,628
Tons Ore Mined 179,633
Tons Ore Crushed 170,779
Tons Ore Milled 171,829
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
North American Palladium Ltd
C.D. McDoulett, Jr.
President & CEO
(807) 345-4479
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